Absolute Beginner Guide.

[mani_kandhanr]

As a beginer i found the info which you gave was very useful to me..

 

[SARASHARIOM]

interesting

 

[tata522]

thanks very much very informative.keep up the good work.

 

[ismailmuhisin]

ledger balance = -465
adjusted ledger balance = -465
adjusted holdings value = 5413
gross margin =4948
available margin for trading =4948

sir, im new to investing and am not trading daily..
My account Margin statement shows as above in my online trading terminal..
what does the above mean?
does the 'available margin for trading' mean whether its the cash available because of my fund transfer to the trading account or is it because of the cash available due to the share holdings itself..?

 

[jxcess]

can someone explain margin trading? Is there a limit on margin trading that can be done in a day? Also what is available margin for trading mean as someone asked earlier?

 

[joshi_s_p]

Margin is nothing but leverage. If you have certain amount of money in your trading account (for eg. $2000.00), you get margin. Margin is nothing but you are allowed to borrow money from your brokerage. In general it is 2 times your cash balance. Suppose you have $5000 cash in your trading account, you can buy security worth $10000. $5000, which you borrow from broker, you need to pay interest for the same.

If you are day trader, you get 4 times margin. But for day trading you need minimum of $25000 in equity.

Hope this answer your question.

 

[jxcess]

Margin is nothing but leverage. If you have certain amount of money in your trading account (for eg. $2000.00), you get margin. Margin is nothing but you are allowed to borrow money from your brokerage. In general it is 2 times your cash balance. Suppose you have $5000 cash in your trading account, you can buy security worth $10000. $5000, which you borrow from broker, you need to pay interest for the same.

If you are day trader, you get 4 times margin. But for day trading you need minimum of $25000 in equity.

Hope this answer your question.

thanks a lot. but can u please tell me if there is a limit on the number of times one can day trade? Also does the broker charge any additional interest on the margin they provide?

 

[joshi_s_p]

If you are registered as a day trader with your broker, you can day trade as many times as you want. As per regulations, your profit on day trading will not be useful till next trading day, but your loss in day trading is deducted from your available trading capital.

Mostly, It depends on broker you use for day trading, some broker might charge extra money for this leverage. But if you are good trader, your profit will be lot more than this interest.

 

[Imtiyaz Ahmed]

Re: General Guide to Day Trading

Thank You So Much

 

[jxcess]

Re: General Guide to Day Trading

Thank You So Much

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