Hi, I am about to start live trade on TOS, for the first time. I have been doing paper trading for a few months. I plan to trade small amounts with minimal risk of loss, in the $10-$20 range, jus to get the hang of it, and test myself in real-time trading. I plan to put the needed 25k for the PDT rule. The main question I have is about the margin rate TD Ameritrade charges me. What is this rate, and how is this calculated? For example, if I buy a share at $100 and sell at $110, my understanding is that I pocket the $10 (in T+2 time). Is this correct? If not, what should I keep in mind? Sorry for re-post if any, couldn't find a relevant post in my search. Thanks in advance for your inputs.
How much does allowing users to trade on margins cost a brokerage?
Hey everyone, I have been researching this question for a while and I’m having trouble locating sources to create even a ballpark estimate. Any answer would help! Between monitoring account value, maintenance margins, margin calls, forced liquidations, etc. how much does it cost from an administrative standpoint and pure capital standpoint to allow users to trade on margins? Any answer or direction to the answer would be very much appreciated! Thank you!
Rough estimation on IB costs and margins for trading stocks?
I'm working on creating my own strategy, going well. However, I find it difficult to find out the two following things: - What's the cost of opening a long or short position on a stock on the S&P 500, approximately? - Same for CFD trading costs - And what are the margin requirements when shorting? I'm using 150% as ballpark figure, so if I trade 1,000 EUR of stock, I deduct 1,500 EUR from investable budget I would like to have some ball park figures to be able to further test the profitability of my strategy. Exact numbers are not required. Thanks!
I'm writing a program to figure out my taxes owed for 2017 and also to understand when my crypto purchases are eligible for long-term capital gains. I did some heavy margin trading and I'm not sure how these trades should be calculated. Let's say I bought 100 ETH in March 2017. Using FIFO, these would become long-term capital gains in March 2018. Easy peasy. Let's now say that I margin traded on borrowed USD (went long, closed position, rinse repeat) for more than 100 ETH later in that year. If I'm using FIFO, when I close my position (sell ETH) does this change the long-term capitals gains date of my initial pool of 100 ETH? Or is margin trading treated completely different in it's own separate pool? Any advice in general in calculating margin trading taxes is much appreciated. Thank you!
Is there any way to find the true daily cost of funding on PoloniEx? Although the best daily lending rate that I observe on https://www.poloniex.com/lending#ETH is 0.001%, with a huge liquidity ( ETH 290k), the daily rate that I've been charged on average for the past 7 days is near 0.04%, how can it be? PoloniEx only displays the total funding cost and it is not clear how it was accumulated. Is Bitfinex better for margin trades?
I paid $1000 for an Adam Khoo investing course so you don't have to! (Summarized in post)
Lesson one is "stock basics" summarized: (2 videos) for every buyer there's a seller, for every seller there's a buyer, fear and greed drives prices, what fundamental analysis means, what technical analysis means. lesson 2 is ETFs summarized: (video 1) Bull markets are opportunities, bear markets are bigger opportunity's, Bear markets never last, always followed by bull market. (video 2) The market is volatile in the short term in the long term it always goes up, what an ETF is, different types of ETF indexes. (video 3) Expands on the different types of ETFs (bonds, commodities etc). (video 3) A 35min video on dollar cost averaging lol. (Video 5) summarizing the last 4 videos. Lesson 3 is Steps to investing summarized: (video 1) A good business increases value over time, a valuable business has higher sales, earnings and cashflow. (video 2) invest in businesses that are undervalued or fairly valued, stocks trade below its value because investors have negative perception of the company lesson 4 Financials summarized (all 4 videos) where to find financials, how to use a website (Morning Star) to screen stocks, how good is the company at making money, Look for companies that have growing revenue, check growth profit margin and net profit margin of company compared to industry. Lesson 5 Stock Valuation summarized (2 videos) go here: https://tradebrains.in/dcf-calculato and look at what the calculator is asking for, go to Morning Star find the needed numbers that are required, bam you got the intrinsic vale. Lesson 6 Technical Analysis summarized: (all 4 videos) What are candles sticks, what do they mean, support and ceilings, consolidation levels. Lesson 7 The 7 step formula summarized: (3 videos) See what I wrote in lesson 3 and lesson 5. lesson 8 Winning portfolio summarized summarized: (video 1) Diversify, keep portfolio balanced, different sectors (video 2) More sectors, Dividends (video 3) More on sectors, more on dividends, what are different stock caps (large cap, small cap etc) Lesson 9 finding opportunities summarized: (video 1) see lesson 3, (video 2) creating a watch list,monitor news, company announcements, stock price, financials Lesson 10 psychology of success summarized: (2 videos) basically: common sense. Lesson 11 Finding a broker summarized: (1 video) look at fees and commissions, see minimum deposit, check margin rates, make sure it has a good trading platform. I just saved you 18 hours and $1000.
Beginner trying to make gains in Futures and Options with a small account. Question about long term holding.
Hi everybody. I'm a total noob to trading futures, and am trying to grow a small account of 3k with both options and futures. I've tried day trading futures with TOS paper trading platform, but am still learning to recognize breakouts, reversals, and the basic candlestick patterns, and am not doing too well. I've noticed that while the gains are more limited, it requires less time and effort to simply leave options and futures contracts to accrue money over the course of a week, a month, or longer as long as you've correctly identified the general trend. While this method may not net one as many gains as day trading, it requires a lot less screen time, and I wanted to know if this is a strategy a lot of people use to make passive income. I'm looking to trade Micro futures in the /MES and /MGC as they have been very bullish lately, with a stop loss in place far below my entry price, but still no more than 10% to 15% of my account size. I know this is far more risk than what is generally recommended, but I don't want to be prematurely stopped out on a longer term trade. I really can only afford one micro futures contract per trade while also having some left over to trade an options contract (usually on the SPY or GLD calls). I'm only looking to make 1k or more per month with this strategy at first as I save up more capital at my day job to invest and eventually trade larger or more diverse positions. Does this sound like a good strategy? Any suggestions? Does anyone here apply this sort of strategy on the regular and have good results? Please let me know what you think and thanks for reading to the end.
For example, let’s say you buy 2,000 shares of XYZ company with $10,000 of your own cash plus $10,000 in your margin account at a cost of $10 a share. That’s a total of $20,000, excluding Trading on margin is a common strategy employed in the financial world; however, it is a risky one. Margin is the money borrowed from a broker to buy or short an asset and allows the trader to pay Margin trading tends to amplify gains and/or losses; for instance, when the price of assets in an account rises, trading on margin allows investors to use leverage to increase their gains. However, when the prices of these assets fall, the loss in value is much greater than the regular trading of assets. Margin Trading: In the stock market, margin trading refers to the process whereby individual investors buy more stocks than they can afford to. Margin trading also refers to intraday trading in India and various stock brokers provide this service. Margin trading involves buying and selling of securities in one single session. Over time, Margin Trading Funding (MTF) is a flexible option for investors; it enables them to trade beyond owned resources and boost their profits if the prices increase on expected lines. The facility is provided against a pre-approved list of securities by the broker, subject to predefined haircut for margin.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.... An example covering the idea of investing on margin and calculating yield. Skip navigation Sign in. ... Cost + Margin = Selling Price ... Options Trading: Understanding Option Prices ... Marg Live Session- Generate Different Type of Sales Rate at the time of Purchase - Duration: 30:50. MARG ERP 3,401 views 08-A, Cost + Margin = Selling Price - Duration: 14:13. intubeman1 596,827 views. ... JRJC & CANF Best Stocks To Buy + Day Trading LIVE ($25,000 Challenge) Alex Winkler 224 watching. Margin trading in the forex market is the process of making a good faith deposit with a broker in order to open and maintain positions in one or more currencies. Margin is not a cost or a fee, but ...