If I daytrade a stock on borrowed money do I get charged interest?
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Answer:
Daytrading is very risky, I would invest in a mutual fund that mirrors the market. That way you can eliminate half of your risk. Dunno about the interest.
You will pay market rate for borrowing money. Your trading institution will inform you of your rate.
Your interest fees will depend on the length of time that you borrow the money.
If the stock you buy declines, you will suffer margin calls.
Hell, yes, you'll get charged interest! Plus fees. Plus your trading commissions.
No-one makes money day-trading unless it's by shear dumb luck, or by selling "no-fail" systems or books on how to make money day-trading!
Indded you will be charged what is known as margin interest. Basically your account will hold a debit balance when you do this and you will be charged interest on the amount that is being loaned to you by the clearing firm. For more on how this works, do a web search on margin interest or Regulation T (Federal Reserve Rule) this is the rule that regulates the extension of credit by broker dealers.
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