Signed a margin agreement with scottrrade and now my account is a margin account, does this change my stocks?
Question:
No, having a margin account does not change the status of your stocks. You will still be able to sell them at your discretion.
If you have any questions about your Scottrade account, please don't hesitate to contact your local Scottrade branch office (http://www.scottrade.com/online_brokerag...
I hope you find this information useful. Please let me know if you have any additional questions. I'd be happy to help.
Scottrade
www.Scottrade.com
1-800-619-7283
A margin account means you can borrow money, based on the value of the stocks in your account, for the purpose of buying more stocks. In a bull market, that allows you to leverage your gains. In an uncertain market, it may mean a 'margin call' -- the value of your account (the collateral) falls below the level needed to support the amount you borrowed and the broker will call you and say: send us cash, or sell something to cover the difference. Margin is at high levels now and I would be very cautious; it's probably not a good time to borrow to buy more stocks.
A margin account increases a trader's ability to buy stocks or to sell stocks, short.
WHEN you use that "margin" or extra buying power, you pay Scottrade for the using that extra buying power.
You should call Scottrade and speak with a broker about what exactly you can do or cannot do within your margin account. When you call, you'll hear a regular "beep"ing sound. That sound lets everyone [you, the caller and the broker] know they are being recorded. Scottrade also has an “Education Center” tab to learn more about the market’s general terms.
There are MANY sites on the web to get additional information. One of my favorites is investopedia.com. Its free and its great for folks wanting or needing to get more information about the market’s terminology AND it also helps folks “refresh” their memory about many things a broker’s site does not provide.
HOWEVER, WHEN a trader does research on a site other than his/her/their broker’s site [in your case, Scottrade], the trader should call his/her/their broker to qualify that research and to ask if his/her/their broker does or doesn’t permit that action or that type of trade.
You should also ask the broker about your ability to trade options: Long Calls and Long Puts.
These provide many, but not all traders, who have a margin account with more leverage than buying and selling stocks.
I trade options - on a regular basis. It takes some extra learning AND practice - by paper trading - but I think its worth it.
By the way, I LOVE trading options.
I wish you well!
VTY,
Ron B.
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