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Topic	Stock Topic 4
red sox 777 06/03/20 8:30:42 PM #472:	StartTheMachine posted... Okay, finally on my work break and...can anyone tell me what all this means? This is why I didn't want to margin trade! Literally all I've read on it was like double your gains, double your losses, but I couldn't resist scooping up more GNUS earlier today. And I actually have no idea why my cash balance is still 4k and I didn't go to that before it started taking out on margin. I think maybe it just hadn't transferred from my bank yet? It looks like it's positions - margin balance + cash = my total account value. But is there anything to worry about with the margin balance? Like is there interest rate on it? Or is there only interest rates on losses for it and not gains? Btw that was 11k of my own money in there so I made 14k in one day. My entire savings from my job this year is 12k.... I make $15.22 an hour. Today has been unreal. Congratulations on the big win! Be careful though. With margin you can lose more than 100% of your investment. If the position value falls below the margin loan, the brokerage will demand that you send more money right away, and if you don't, they sell your stocks and use it to repay the margin loan. If the value of the stock falls very quickly (for instance, if a stock gaps down overnight), you can end up not only losing your whole investment but owing the brokerage money. I'm saying this because the fact that you made 14k off of 11k in a day means that you opened a very high risk position (that succeeded). If it's possible to get a +14k result it's also possible to get a -14k result, which would probably be quite crushing. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! <cite>red sox 777 posted [p:940145883] in Stock Topi... [t:78641278]...</cite> <quote>StartTheMachine posted... </cite> <quote> Okay, finally on my work break and...can anyone tell me what all this means? This is why I didn't want to margin trade! Literally all I've read on it was like double your gains, double your losses, but I couldn't resist scooping up more GNUS earlier today. And I actually have no idea why my cash balance is still 4k and I didn't go to that before it started taking out on margin. I think maybe it just hadn't transferred from my bank yet? It looks like it's positions - margin balance + cash = my total account value. But is there anything to worry about with the margin balance? Like is there interest rate on it? Or is there only interest rates on losses for it and not gains? Btw that was 11k of my own money in there so I made 14k in one day. My entire savings from my job this year is 12k.... I make $15.22 an hour. Today has been unreal.</quote> Congratulations on the big win! Be careful though. With margin you can lose more than 100% of your investment. If the position value falls below the margin loan, the brokerage will demand that you send more money right away, and if you don't, they sell your stocks and use it to repay the margin loan. If the value of the stock falls very quickly (for instance, if a stock gaps down overnight), you can end up not only losing your whole investment but owing the brokerage money. I'm saying this because the fact that you made 14k off of 11k in a day means that you opened a very high risk position (that succeeded). If it's possible to get a +14k result it's also possible to get a -14k result, which would probably be quite crushing. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest!</quote> ... Copied to Clipboard!
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