Question about margin and trading?

Question

Say I have 50,000 in available cash to purchase stocks and margin of 50,000 giving me 100,000 in buying power. So on Monday I break even buying and selling $50,000 in stocks. Will my cash funds be back to 50,000 with 50,000 in margin available the next day on Tuesday?

Thanks for the response and help

Answer 1

Yes, your margin is restored when you close out your positions, less the fees mentioned above. For some accounts, because positions take 3 days to close (settle), however, you won't get your margin back until 3 business days after the transaction closes.

Answer 2

No, fees, commissions and interest will be deducted, so if you buy stocks and sell them for a wash you come out on the negative. Don't forget taxes either. Only a small portion of trade losses can be deducted. Then there is other operational expenses to consider. Equipment, Electricity, rent, etc all cut into your profit margin.

This is what kills most day traders. They do not figure and allow for the cost of operations.

Answer 3

yes as long as you dont hold them over night. short and simple answer =D

Answer 4

the US operates on a T+3 clearing system - clearance is done 3 days after the trade.

However, that's not to say your brokerage doesn't work things out for you differently...

If you daytrade, then generally speaking, once you have settled out all your positions, your balance is considered to be "reset" - plus or minus what you traded for and minus commissions.

So yes, that means you're free to make hundreds of trades a day so long as you're making good ones.

Answer 5

I would assume so if you 'broke even'.

Is that the point?