Robinhood Margin Explained | Know This Before Using Margin
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- Опубліковано 28 вер 2024
- In this video we are covering what you need to know about using margin on Robinhood.
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I have few questions. Apologies, I am still learning about Margin investing but do not know enough.
I have Robinhood Gold. Let's say I am borrowing 3000$ . First 1000$ is interest free and I get charged 8% on 2000$.
1) Do I pay 8% interest just on the borrowing amount or capital gains/profits as well.
What if the Stock I bought for 3000$ becomes 20,000$ after few years. Do I still pay 8% on borrowed 2000$ or 20,000$
2) Do I keep Paying margin interest every month/year until I sell my stocks/securities?
3) How do I pay off margins? Just keep uninvested/ unspent cash on account?
4) Does Margin investing make sense in this kind of long term investing situation?
Thank you. Looking forward to your reply.
Im in the same boat! Would be nice to know how to pay off the margins.
Still no answer to this comment; why is this video still present? Please delete it.
1) Do I pay 8% interest just on the borrowing amount or capital gains/profits as well.
What if the Stock I bought for 3000$ becomes 20,000$ after few years. Do I still pay 8% on borrowed 2000$ or 20,000$
You will have to pay only for the borrowed amount. so you iwll pay 8% on borrowed 2000$ ONLY.
2) Do I keep Paying margin interest every month/year until I sell my stocks/securities?
Yes, you can pay margin interest every month until you pay back the margin amount you owe.
3) How do I pay off margins? Just keep uninvested/ unspent cash on account?
Yes.
4) Does Margin investing make sense in this kind of long term investing situation?
Thank you. Looking forward to your reply
Yes.
Same question! How do you pay you margin interest? Monthly? Yearly? Lump sum? Can i pay early??
You're doing a fantastic job! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). What's the best way to send them to Binance?
Wow, this video is really helpful.👍🏾🙏🏾 When I have a question I will come here and type it so you can make a video for me please because you explain things very clear. Again thank you!
Great video, thanks for showing us your RH account. More videos about margin tips and advice especially for selling puts/calls !
I was looking for information on this topic a few months ago and after watching a number of UA-cam videos I have to say this is the most informative one out there on the topic of Robinhood Margin and Robinhood Gold. Keep up the great work!
Seen better explanations. Actually he didn't answer what I was looking for sadly.
The dumb video did not touch on anything on margin and advocates for Gold.
Wasted my 8.35 mins .
Can you use margin to dividend invest and pay the margin with the dividend?
Certainly could. I do that as well as sell covered calls. Also if using Robinhood Gold, your first 1,000 of margin is (free) as in no interest rate on it so I think that is a solid way to go in terms of tossing it into a dividend stock
@@TCTrading thanks I'll test it out with just 500 to get a feel for it
With margin on robinhood, do you earn interest on your uninvested cash with gold
Is the only money you pay RH your monthly interest? Or will I ever have to pay the margin lump sum RH gave me back?
Hey I have over 25k in my Robinhood account and I have done many day trades now how do I get out of day trades, so i can withdraw some money and keep the Margin account
How much are you making with 7k suscriber?
Not very much at all from UA-cam. But I will say the subscriber count really doesn't matter much if your videos get views. It comes with time I guess, but this channel is not meant to make tons of money. Meant to answer questions, explain concepts/strategies so that people have a free resource to rely on. If I get enough questions about something and make a video 100 total people ever see but it helps them get the answer they needed, that is what it is all about.
Sorry for the noob questions, but like why would i want to spend the margin that im using?? wouldn't that put me in the hole??
If the margin rate is going to cost lets say 8% a year and you achieve a 10% return on that money, it makes sense. Or if you use it for short term hedges/trades. Outside of that it can be dangerous
@@TCTradingis the interest yearly? So let’s say i deposit 2k and have another 2k in margin
Will I pay 8% on the 2k or 4k
old question but you would just pay interest on what you are borrowing on margin, 2k.@@TheManzanoShow
Having a bankruptcy discharged I won’t even think about using margin.
I watched the whole video. the information is there. Do this. Remake the video so it's not a year old. Robinhood Margin Something. But this time. Talk about how to turn it off and what happens when you turn it off. Should you pay it back before turning it off. Do you have to pay it back at all.
Thank you so much for your hard work! 😊 Need some advice: 🙏 I only have these words 🤔. (behave today finger ski upon boy assault summer exhaust beauty stereo over). Not sure how to use them, would appreciate help. 🙏
My big question, is how does that interest accrue on day trades using Robinhood?
If I buy and sell $10,000 of QQQ on margin the same day, do I owe any interest?
What if I do that ten times in one day?
You pay money on your margin over a year so if you have 6,000 margin limit and use it all you are expected to pay back 6.5 or 10.5% back at the end of the year and it does not affect day trades
If I buy and sell $10,000 of QQQ on margin the same day, do I owe any interest?
no interest for day trade.
What if I do that ten times in one day?
no interest for day trade. (0$ if you buy and sell on the same day).
This may sound of you, but I did marginal investing by an accident because I was just clicking on the boxes below the main investment screen. Is there anyway you can return this money?
Would you invest in a secure high dividend paying ETF with margin like SVOL? The dividend payment would be way higher than the margin interest. That sounds like free money, as long as the fund doesn't crash and the dividend stays higher than the 8% margin interest. What do you think about that idea?
Hi Richard, it's worth mentioning that Margin is geared more towards day traders that can make a significant amount in a short period of time, always take into account you are getting charged interest of your BALANCE DAILY not MONTHLY .... You could possibly get a long term Loan at a 13% APR and beat Margin by miles
@@alcubes2000interest is charged daily and divided by 365 days a year, as opposed to being charged monthly and divided by 12 months a year. The difference is negligible and a 13% APR will not beat a 6.5% margin rate
It's not exactly free money, its called a spread. If you're paying a fixed 6.5% on your margin loan, investing in an asset that earns more than that is profitable and it is what most financial intermediaries do. However, bear in mine that the dividend yield on an ETF may not change but the value of the underlying ETF is subject to market volatility. If you get 8% on your safe dividend ETF and pay 6.5% on margin, you get a net 1.5% spread return.
Useless video!! There are 10 more EXTREMELY IMPORTANT subjects he could talk about regarding margin maintenance etc etc but he’s stuck with Robinhood Gold membership!! All you need to know is that you don’t have access to instant cash if you don’t have it! Good bye!
With that 1000$ interest free, If I throw 500 of that into BND that pays monthly, bad idea, good idea, I don’t have much money to work with 2-3k
how do you speak to a live margin rep on this, cant find the weather anywhere? thanks
My brother in law passed away and made my wife (his sister) 100% beneficiary of his Robinhood assets. I am looking around on his account and see his account type does say "Margin" But he does not have that "margin" link on his accounts page (like you have at timestamp 2:33) He used to do margins which is maybe why his account type still says margin? How can I tell if the cash I see in his portfolio is really the money he owns of if it's on margin? (he just has one stock now) Hope that makes sense. Thanks
Sorry for your loss. The best way would be to go into the "investing" portion of the account and see the breakdown. A margin account does not necessarily mean someone is using any margin. The account value on the main screen is how much money a user has invested in the platform. It will tell you "margin used" in the details of the investing page
Thanks for the reply. In checking the Investing page, I see the entire amount in the holdings plus cash for investing matches the total $$ on the top left. So it appears that is the account value and not margin. Thanks !
It probably an instant account which is technically margin.
The $5/month fee can be paid for with reliable dividend investment(s). A margin could be used to make that as the first investment to make R Gold self-sustainable. You can do it with less than the $1k threshold (to avoid interest). So a tiny passive income stream can be started without using money (at first) through this.
Quick question: when using a margin, what is the payment schedule to pay back the margin? Is there a monthly min. payment towards it? And/or a time period in which to pay it off?
That's what I would like to know...
Can’t I just pay it off the $10,000 debt with my dividends.
I can't figure out the day trade limit. I just made the margin account and my buying power is double my account value. But my day trade limit is half of my account value... now it's saying day trade limit 0....
I'm looking into getting margin now but to me it sounds like you have unlimited day trades but for some reason it's not giving you the full amount today trade with which I thought that was the whole point of the margin. Do you have an update on this how it work for you
I was drunk out with friends and was on the toilet and bought 25k margin on spy at resistance all time highs I felt bullish and wanted 1% for 250$ and I sold exactly up 1% and it was surprisingly good. But why can I borrow 40k if I only have 33k account that has 25k in it?
Thank you for this video explanation, m'guy. It's appreciated!
Glad it was helpful!
I found the best way possible I mean possible to use margin
***BUY STOCKS that pays dividends with margin it will cover your monthly cost and build your portfolio with consistent gains
Yes in theory this is a solid plan, but any sizable drawdown can get you margin called. Also margin rates are a bit high right now so you would need to make sure you are outpacing the interest you owe on the margin. Thats where selling covered calls can come in to give you that little boost in cash flow
Yeap, TCtrading is correct, also note you are paying interest of your balance DAILY so be cautious when investing in dividend stocks!
Still a bit confusdd what changes my availble margin to borrow..
My portfolio (changes each day) +2k?
Is this change instant also?
Do you see any value is using RH margin for just buying stocks? As opposed to selling puts/covered calls/day trading etc?
Or is it more just geared for those types of things.
So let’s say my max margin is 6k, but I set a borrow limit for 2.5k, let’s say I get a margin call and they force sell my stocks is the sell amount going to be maxed at 2.5k? Or will it 0 out my whole account? I want to play margins smart and not loose everything and what if I want to be done with margin and I made some good profits can I use the profits to pay back the 2.5k and turn it off?
I second this question
Thank you so much
Hi. I have gold account. I just paid my margin used. However I can’t use buying power now. I’m only has 5 dollar cash. What would be going on ?
7.25% now =/
Is that like 7.25 cents? Or 725 dollars?
they literally have a %@@ovojay2561
not sure if this has been asked but if i use 1k in margin how do i pay it back
I was struggling with that. Because i do have gold and i wanted to use margin. I enable margins to borrow 5k to invest it and they put 30k in my buying power and I freaked out because I did not want to loose my investment. I only needed 5k, so I thought they would let me select the amount. I am so scared. Now tell me how they will take the money back,and when? Please
They didn’t give you any money so there’s nothing to take back. They simply gave you “buying power” which is the equivalent of a credit limit. If you buy $5000 worth of stocks then you’ll only have borrowed $5K. You can leave the rest of the buying power untouched.
i have robinhood gold and i dont see the margin spending Tab. I do have margin enabled too. how do i get to see that margin spending tab? Thanks
Can I do day trading using margin fund?
I borrow 2,000 and my porfolio value is 20k why it means margin maintenance $5k ?
RH gave you 20k? For a 2k deposit?
Great video.
Has anything changed with margin spending with the new spending account vs the old cash management? Are you able to use the new spending account debit card to access the margin spending like the previous debit card could?
How much does it cost again for paying intrest I must of mist it in the video
How do I pay back my margin? Can I pay it back early, and will I still be charged interest if I pay it back. Please answer it would be very helpful, thank you!
I believe the interest is charged daily,
@@felixmikayelyan6656still does not answer her question.
Turn ur volume up
Lol clean your ears 👂🏿
The volume is normal man
you turn YOUR volume up lmao
Thanks for this vid bro. Crushed it. Just subbed
Appreciate it!
Thank you for the video. So the interest when does it start is it when you use it or right when they approve it.. let say I'm approve for $1000 does the interest start right when I buy stock or withdraw it right till then if it's on my buying power I will not be charged interest? Just making sure thank you
Once you are actually using the margin funds is when the interest will start to accrue
I have 3k margin available to use with 8% rate as gold member. Which stocks etf do you use or recommend? Thanks.
Uranium
Thank you for this information man
No problem 👍
Is there anyway I can return the marginal investing money. I hit it by accident 😢
I have alot of questions bro. Can you help me out? Im trying to transition to full time day trading so I can get away from plumbing (its a shitty career). I have gold, I have bezinga, I need alot of advice if your willing.
Does anyone know if they offer 4x margin for pattern day traders?