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Topic | Stock Topic 12 |
Sunroof 11/25/20 9:28:42 AM #312: | So I called up Vanguard to get some clarification. Firstly, I am designated as a Patterned Day Trader. This allows me to buy up to four times what I have in my account. I have a little over $113k meaning my total buying power is slightly above $455k. My next question was how does borrowing margin money work. I found out that it depends on how much money you borrow, but for over $250k its like 6% annualized. So, if I borrowed $250k and sold the same day, youd do $250k times 6%, then divide by 360 (not 365). If it was borrowed for two days, youd divide by 359. Etc. Can you imagine if I put $455k into a stock??? Even if it went up 1% throughout the day, Id make $4,500. But I am way too conservative. I would be worrying about the stock plummeting 10% in one day thus essentially halfway bankrupting me... ... Copied to Clipboard! |
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