how long does it take for funds to be settled after you sell a stock on scottrade? is there any brokergae that doesnt make you wait between buying and selling?
How long does it take for funds to be settled after you sell a stock on scottrade...
Michael Jenkins
Easton Thomas
Settlement times are SEC mandated, and are the same regardless of brokerage.
It can seem like you're getting around it if you have a margin account, but this is really because you're borrowing more, rather than using unsettled funds.
James Lee
ty but how long does it take
Ayden Carter
3 business days
Logan Thompson
JHDJGFIHSDJFK so what is the point of daytrading
Angel Davis
Like I said, if you trade on margin (or with enough cash that you rarely spend most of it), settlement becomes somewhat irrelevant.
Eli Green
ohhhhh ok so i can sell it whenever right? is there a fee for trading on margin
Christopher Scott
Yes.
Not a fee, but most brokerages will have fairly high deposit minimums.
Ayden Foster
i got 793 am i good senpai
William Gomez
Depends on which brokerage.
But probably not.
Parker Torres
alright ty
Julian Harris
margin account balance are determined based upon value of stocks purchased on margin:
advisorservices.com
Interest rates on margin loans are usually around 10%.
Here is TD Ameritrade's margin interest rate (9.25%):
Ayden Morris
So say I buy and holld on margin for a week, how would that 10% work? Would it be prorated?
Julian Bennett
margin accounts dont really work that way. You borrow on margin to trade, not really to hold. If you borrow to hold, and the share price declines, the broker will issue a margin call, where they require you to deposit funds.
funds on margin are more used for trading purposes. I sell my AAPL stock today and buy QQQ today. I have to borrow the funds to purchase the QQQ stock, because I dont have settled funds. So I pay a few days interest, because I believe that the gains I will make on my QQQ purchase is more than the interest I will pay to purchase it.
I did this last year trading UWTI and DWTI. the intraday volatility was so high I could buy and sell each everyday and make money. I only had $20k in my account and was trading 10k each way on my trades. I was making $500 a day trading the UWTI and DWTI and it cost me 5 to 10 bucks a day on margin interest.
Evan Gutierrez
You can use Robinhood Instant or UStockTrade, but they're both kind of shitty.
Nolan Harris
What exactly does it mean to pay "a few days interest"?
Luke Johnson
because if I sell $10k in X stock today and buy $10k in stock Y today, unless I have $10k in settled cash in my brokerage account, I will have to pay interest on the $10k I used to buy stock, until those funds are settled.
I just got fucking baited and trolled, didnt I? God Damnit.
Aiden Thompson
He's asking how much interest that is.
You said the interest rate is 10% but didn't give a timeframe.
Justin Butler
It's daily interest. Can OP not do math? 10%/365 = .00027 times $10,000 compounded daily is about 3 bucks a day.
Jose Lee
>daily interest
Thats what I was trying to ask. So its 365/10. Not bad if you do your research on what youre buying. Do they generally lend you only as much as you currently have in stock?
Levi Brown
It's generally 4 to 1 intraday (although you could get up to 7 to 1, if you're valuable), and 2 to 1 if you're holding day to day.