LogFAQs > #940154716

Okay, I got in over my head too quick it sounds like, but now I get it. Funds aren't settled for two days after a trade.

Just got off the phone with an Ameritrade customer service rep and he helped me understand margin a lot, and what it means to be at a margin/maintenance call. They have the power to sell my shares if they see the stock slipping, but they'd only sell enough shares to make up for the margin I owe. And sell, not like, take my money, so that calmed my nerves a whole lot. But they can sell whenever they want.

He basically said to watch the pre-market and sell enough to make up that margin when I can. He said I'll likely be low on the list because there are people who go through margin trading accounts with much higher value than mine and they go solely on account value, not on the volatility of the stocks they're invested in or anything. Also, the interest on margin -- which is accrued based on the share value you bought a stock at as well as days you have a position in the stock but NOT for every share you own -- isn't bad at all. I can see why people trade on it; it's just the losses are so insanely risky. It worked out for me this time but I may be margin free in the future.

Thanks for calming my anxiety while I waited though Moonroof. I consider you an expert (sorry Chris, but you too!) solely because you helped me make my first few Gs on Bank of America Stock. And you're playing with soooo much more money than I have. Did you make a lot of that trading or do you just make bank on your day job?

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- Blur -
Welcome to your Divinity.