How to use a MARGIN account with QUESTRADE
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- Опубліковано 6 вер 2024
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Bottom line is always have an eye on the total maintenance excess if it is moving towards 0 fund the account or else get ready for a margin call. When you have TFSA linked to margin account it is a real pain to do the excel calculation.
I have an older video where I give an example with linking the tfsa, but yes itss more complicated, and the performance in your tfsa will affect your buying power in your margin account
they should have an option if you wanna use it or see it on your balance account. it's quite confusing especially when its says buying power. new to questrade :)
Good Job Shihab. Got most of my questions answered about margin account and US stocks buying, something I waited 40 mins for Questrade customer service to answer... LOL. Thanks again.
Ya questrade customer service is too busy since March
Well explained on a confusing topic! You should give a link to download your spreadsheet.
If anyone has a link to a spreadsheet like this we could all use it
That's right.... I am waiting for that. I had sent email but I did not receive reply from Shihab.
Send me an email
Could i also get a copy of the spreadsheet?
In marging account,how Can i use my 100% money rather than margin money to avoid interest? And why TFSA can't be used for shorting stock?
Watch my new video on margin, I amswer this question, tfsa is a registered account, there are limitations from the government, the only selling you can do is covered calls, but if you are bearish you can just buy a put
I think I understood that to trade options it is better to change the currency from the beginning since they are with US assets
If you will buy and spend cash then yes
In the stock screen (where you see Long MR) you have something called borrow rate. Can you elaborate on that.
that is for shorting shares, different strategy completely, if you want to short shares, you will pay that amount as you are holding the negative shares, until you buy back the shares and close the trade
Also follow up to my other question, what are the negatives and possible downsides of linking my tfsa to my margin?
you get tempted to use your extra buying power, your new positions drop, you are placed in a margin call, you are forced to sell your positions for a loss
I can see a lot of newbs getting confused at this. But margin is never easy to grasp. Looking forward to seeing more vids on margin!
Thanks
@@ShihabPersonalFinance Very Through Video btw! Thank you Very much. I am also from Montreal just started using Questrade. Can you share the Excel Doc to Calculate the ME, please? I appreciate your work!
Message me shihabsblog.com/contact-me/
@@ShihabPersonalFinance sent 👍
Thanks. Always wondered about margin account. 6% is a alot to overcome even if its tax deductible. Hey your a family man.
Ya its a lot, IBKR is 1.55%
Day trade with it
I’m a newbie in Questrade . I’m very positive to learn more about investing. Do you have videos for beginners? I love the way you explain, very detailed👍
What is to stop someone buying a large quantity of a safe investment and holding on margin? When is interest paid?
Interest is paid every month as long as you have a negative cash balance
@@ShihabPersonalFinance is it a viable strategy to buy and hold something earning say 5% if you are paying say 3%-examples only
I think questrade interest rate is 7% a year so not worth it no
Would you recommend getting a line of credit (like HELOC ) and use it in the margin account to sell options. Monthly return on selling option should comfortably beat the interest payments.
On paper its a good decision, in practice it is more stressful and can be a bad decision. I used to do that but now I am happier having less debt. Mental health is important.
@@ShihabPersonalFinance got it. Could you give an example as to how it can be stressful.
This is really helpful info about margin account.
Glad it was helpful, share with a friend
This was great. So detailed with many examples, minus superfluous commentary. Thanks!
Thanks
Can you buy ETFs on a margin account? You would have to be making more than the interest rate obviously-love your channel
If you have cash in your margin you wont pay interest but yes if you borrow from the broker you need to make sure you make more than the interest paid
Explained really well Thank you for the video ; Could you please share that excel formula for calculations? Much appreciated
Message me, contact in description
Hello Shihab, can I get the excel please?
Great explanation 👍🏿👍🏿
Thank you very much Shihab. This answered virtually all my questions on questrade margin account. I'm glad it doesn't allow the use of margins to buy options. However, you said you use margins for credit spreads on SPY, those are options strategies too. Could you please explain the difference ? Secondly, do you please have examples of how to convert CAD to USD on questrade margin account ? Thirdly, this video is now 3yrs old, has anything changed? Do you have more recent videos on the same topic explanaining any chnages? I see you are into options trading with questrade, you have one more subscriber, me of course,. This video is just what i have been looking for.
Love all the details. Thx
Quick question, will the interest get applied on my margin if I buy and sell a stock within the same day. So say for example, I buy a stock when the market opens, and sometime during the day I decide to sell it. In that case, will there be any interest placed on it. Thanks in advance. Great video!
I mention this in the video, according to the website, interest is charged on the average daily closing balance, so in your scenario, you shouldnt be charged interest.
Why is it recommended to take full advantage of your full buying power. (eg) $1000 = $3000 . I like to just put a 1000 dollars in and only use that at a time instead of going into what I thought was a Questrade over draft. I’m new to this so could tell me way the recommend to take full advantage of buying power 🤔
No it is not recommended to take it vantage of your full buying power you don’t have to use margin you could simply just use your cash but then you just have to always look at your cash line and don’t get confused and look at the max buying power line
Thank you so much, Shihab! This makes everything so clear to me!
really glad to hear that thanks
Great work and explanation! Very few videos out there with such detailed info. Appreciated sharing knowledge.
Glad you enjoyed it!
Hey amazing video thanks couple questions , when they charge you interest. Do they take it right out of your account also? Or do you manually have to pay for it ? Second tax time do you have to calculate all your tax losses and capital gains ? Or do they do it for you and your account can figure it out ? If that makes sense sorry lol
They take it out of your cash account.
The t5008 should consolidate the tax gains and losses.
Thanks Shihab for the wonderful demonstration - very helpful. I also had problem with the Max Drop formula, so wrote a small macro to solve the issue. It'd helped if you pasted the formula; but for me its okay now. My results exactly match to yours. Thank you once again.
Thanks
In margin account with day-trading, we have to sell the stock in the end of the day or we can hold it? If we can hold it, how long we can hold without interest? How much interest they charge?
Thank you
7% interest per year for any negative cash balance, accrued daily, charged monthly
Thanks for sharing this video. Can you please illustrate for me (MR% of amount left to borrow/(1-MR)% of total initial value=%
of room to drop before Margin Call occurs) I am not clear with this formula. Thanks Shihab.
not sure how I can explain it through a comment, it is just a formula derived from the maintenance excess formula, to give me an idea of how much a stock can drop from my purchase price, before I get a margin call
shihabsblog.com/contact-me/
Thanks Shehb, I understand that the interest is for holding one day overnight, what if for example you borrow two times or three during one month, how the interest should be calculated if you borrow and sold many times in a month?
They take an average of.your borrowed balance for the 30 days
@@ShihabPersonalFinance thanks, they average on day over year as the chat reply so it will be (the benfit/365 day)* the borrowed amount each time. Then will be deducted monthly.
Yes deducted once a month, middle of the month I think
Thank you for this video, Could you please share that excel formula for calculations? Much appreciated
shihabsblog.com/contact-me/
Thanks a lot for the content. I am wondering if commission on requesting exchange fund is different than Norbert's Gambit method
Ya they charge 1.5% over spot rate
Hi! I am wondering how is the Margin Excess and Buying Power impacted if you are selling Put options? Thanks!
Great question, this is something I am still discovering, but what I noticed is if I am selling a naked put at 300 strike on spy, my maintenance excess goes down by about 5k, in general you need to have enough buykng power for 100 shares of the stock at that strike
Here is how questrade explains it, but I dont understand it
Short option (naked option)
The value of either 1 or 2, whichever is greater:
A percentage of the market value of the underlying security, determined using the following values:
a. For equity options, or equity participation unit options, the margin rate used for the underlying
b. For broad based index options, 10%.
c. For narrow based index options, 15%.
d. For major currency options, 10%.
e. For non-major currency options, 30%
minus
Any out-of-the-money amount associated with the option
or
Either a or b, depending on whether it’s a short call or short put position:
a. In the case of a short call option position, the market value of the underlying security, multiplied by 5% (may be higher for certain securities)
b. In the case of a short put option position, the aggregate exercise value of the option, multiplied by 5% (may be higher for certain securities)
@@ShihabPersonalFinance Thanks!
@@A__SB antime
@@ShihabPersonalFinance I wonder how much your maintenance excess would go down by if you sold naked puts at 85$ strike on SPY (or SPX)?
Since the risk is so low, it seems like it would be safe to just buy as many contracts as possible the expiring in 2022 and amass a fortune :O
Thanks for the amazing content! Would love to have that excel.
Shihab.eldessouki@hotmail.com
@@ShihabPersonalFinance Thanks for sharing your knowledge! I would have spent hours trying to find how to calculate those numbers! I've connected my TFSA to my margin account. Do you have those formula in your Excel? Thanks!
@@LPLegault haha no I didnt asd that cause it gets complicated, but it is the same thing, it is like your tfsa and margin account are one. Lets say you have 100k in your tfsa all cash, that gives your 333k of buying power in your margin account for 30% MR stocks and 500k for 20%MR stocks, but 100k if you trade options. Now if you use that 100k in your tfsa to buy a 30% MR stock, you now have 233k of buying power in margin account for 30% MR stocks and 350k of buying power for 20% MR stocks and 70k for trading options. If you use all your tfsa in a 20% MR stock, you 80*3.33 for 30% MR stocks and 80*5 for 20% MR stocks and 80k for trading options. But eemembe3if your tfsa value drops, your margin buying power drops.
@@ShihabPersonalFinance Wow! Thanks for the fast response! Yeah the margin buying power is the tricky part to calculate. The TFSA is moving so it's more difficult to estimate the room for drop before margin call. Without the link, I think 50% is relatively secured for a stock like TSLA but with the link I think I'll aim to 25-30%. Thanks for your help! I'll try to figure out a formula!
@@LPLegault i think tesla is a 40% MR be careful, just make sure you have enough maintenance excess, dont use more 50% of your buying power to be safe. The formula is the same, just need to have more inputs. Cash, equities at different MR, etc...
Awesome video man, answered all my questions. Thanks!
Amazing video!!! I read a lot of Reddit posts saying that maintenance margin of ETFs such as qqq was increased from 25% to 35% for US customers for interactive brokers customers during the COVID crash. Just wanted to check with you if similar thing happened for Questrade and how should we account for the same when managing our risk?
With questrade they remained at 20%, but airlines went from 30 to 60 or higher
Thank you!
I'm learning so much here than I learn from my paid program!! Thank you @Shihab's Blog
Glad to hear that
Great video. Really helpful. So you mentioned you can't use margin to trade options? If that's the case and you can only purchase with your own cash then wouldn't TFSA be better?
You can use margin but you dont get that extra buyig power like when buying stocks, there are strategies or option selling strategies that can only be done in a margin account
hey Shihab sorry i keep asking you question! i just learned so much from your videos and helped me a lot. this will be my first time ever having capital gains in a margin account I'm currently up 30k year to date hopefully it continues lol . but what is the best strategy to help reduce the tax ill pay income time next year if I end up having capital gains by the end of the year? if any? or just save some money to pay the taxes on it
No strategy really but to offset it against other capital loss if any, could be from previous years, but you are not going to create a capital loss intentionally to offset a capital gain, so no way to avoid it, 15k will get added to your overall income and you will get taxed on it based on your bracket
Awesome video. It cleared up my concerns about whether or not I can go negative when using strictly my deposited money vs using borrowed money.
Glad I could help
Would you please share the excel formula sheet?
Email me...contact info below
Hello is it possible to get the spread sheet it will be really very useful for us please and thank you
shihabsblog.com/contact-me/
Very nice. I found questrade doesn't explain line items all that well. Thanks!
Indeed
GME has a Margin requirement of 500% how does that make sense?
If u sell a naked call....thats how risky it is....but it has a 100%MR for selling a put, which is the max
It has 500% short MR but 100% long MR, long MR is what you should look at when it comes to buying shares or selling a naked put....short MR is for shorting shares or selling a naked call
yes thank you, I was looking at shorting the stock indeed.
800 call for this week expiry was selling for 6$, but required 69k ME haha to sell....takes.money to make.money
Thanks ! Question: So its encouraged to link TFSA account because it increases your buying power in your margin account right?
only if you understand the risks
What is the difference between long MR and short MR?
Long MR is the margin requirement for long trades, like buying shares or selling a put, short MR is the margin requirement for short trades like shorting shares or selling a naked call
When i sell put, Questrade debit my buying power for the amount of 100 shares, it seems to be about 15% with the us brokers... i was thinking when selling put questrade debit only the 30% on buying power and thats why at expiration at 2pm... if you dont have enough money they close your position to be sure your not assigned...
They will debit your maintenance excess by 20% of the strike price times 100 times the number of contracts, minus the amount you are otm, buying power will be debited 3.33 times.that amount, assuming you are sellong a put on a 30% margin requirement stock
@@ShihabPersonalFinance ok thank you for the feedback. i will pay more attention on that tomorrow, perhaps after the trade is open they adjust the amounts vs the confirmation label when we open the trade
With naked options, buying power changes as the stock moves, also the what you see in the confirmation windownk is based on yesterdays closing price, it isnt real time
it was the best video I watched in UA-cam! Thank you a lot! I borrowed 6500 USD and did not even know about it..
Everyone does that mistake
@@ShihabPersonalFinance Could you help me please to calculate interest rate I will be paying since it is not shown yet on Account Activity, as I see it = 6500/100*7= (7% is interest rate for USD) =455, 455/12=37.91 (a month) and since I opened Margin acc only 15 days ago then 37.91/2 = 18.9, is this correct? Thank you!
@@vasiliibogdan1291 ya thats correct, you should see in account activity toward the 15th of the month, for last 30 days, so you converted your cad to usd?
@@ShihabPersonalFinance Yes, I did as soon as I watched your video. I eliminated all debt at once.. Thank you a lot this video from me earns 1000s of Likes!!!
@@ShihabPersonalFinance sorry, one more question: Is it OK to convert money, say CAD to USD withing the Questrade or they have some "inconvenient" exchange rate in order to make some profit. Or is it true exchange rate as of today and Questrade does not purposely lowers exchange rate?
thanks for sharing. in your example from the video, could you have purchased a Canadian stock which has 30% MR? Since you have zero CAD cash, but still have CAD buying power.
Yes, but then id be paying interest on the negative cad cash balance
@@ShihabPersonalFinance thanks, now suppose if the CAD total maint excess is in negative but USD total maint excess is positive, would there still be a margin call for a CAD stock purchased on margin?
No the combined balance has to be negative
Thank you for making this amazing video. I have one question .how much the limit of TFSA account and could explain more about different types of account in a video and about TAX.thank you
TFSA contribution room
You will accumulate TFSA contribution room for each year even if you do not file an Income Tax and Benefit Return or open a TFSA.
The annual TFSA dollar limit for the years 2009 to 2012 was $5,000.
The annual TFSA dollar limit for the years 2013 and 2014 was $5,500.
The annual TFSA dollar limit for the year 2015 was $10,000.
The annual TFSA dollar limit for the years 2016 to 2018 was $5,500.
The annual TFSA dollar limit for the year 2019 and 2020 is $6,000.
The TFSA annual room limit will be indexed to inflation and rounded to the nearest $500.
Investment income earned by, and changes in the value of TFSA investments will not affect your TFSA contribution room for the current or future years.
ua-cam.com/video/IiggWGsCafo/v-deo.html
ua-cam.com/video/w76LLMyPuV0/v-deo.html
Thank you for the video...But you are 1 week late :), I opened margin account last tuesday...anyways used your referral code...Will be trying vertical call/puts from Monday!!
It is super hard to find quiet time at home woth 2 kids, I have no idea how meet kevin does it, by the time they go to bed, I am not alert enough to talk numbers haha, which stock are you going for?
Planning vertical call spreads on delta and spy....both bearish....Let's see how market behaves on Monday..
Cool, I actually do put credit spreads on the spy, only one of us can win haha
Hi - Thank you very much for a detailed explanation. also one question - Is there any way to get the spreadsheet that you showed in the video? thanks in advance.
Thanks ya email me
Which Account is better for day trading of OTCs, TFSA or Margin account?
margin
Shihab's Blog thank you Shihab
How does shorting stocks in a margin account work? Do I have to use my margin and/or pay any interests?
You have to pay worst than interest, you have to pay borrowing fees, you can see the rate under the stock quote.
I’ve had to watch this video about 4 times now. Getting the core concepts but the formulas are still a little foggy. Could you simplify the process used to calculate how much the stock would need to drop to be placed into a margin call?
you dont have to worry about it much, just dont use all your buying power
Shihab's Blog I’m wanting to use as much power as I can to increase profit. Willing to take the risks that come with it. Any chance you could put that equation into layman’s terms? The wording is confusing me slightly.
Hi sir can i do day trading in Wealthsimple through personal account?? And which account i have to open for day trading in Questrade?? Please give me answers sir
with questrade, you can day trade in a margin account or rrsp account
Hi. Here is a question that I have been unable to find an answer for. To sell cash secured puts you cannot use any margin. What if instead, I was to use my margin account to buy stock so essentially buy 300 shares of XYZ company instead of 100 without borrowing, then would I be able to sell 3 calls on that stock instead of 1, using the margin available to my advantage? Not sure if the extra premiums you receive ( if you are able to do this) outweigh the interest charges from borrowing on margin. I just thought of something else. Can you sell puts on margin at Questrade? So, non-cash secured?Thanks!
Yes you can sell puts naked puts or cash-secured put but when you sell a put question does not know your intention whether you want to use cash only or you want to use margin so you have to know how much cash you have and just trade accordingly but it won't stop you from going over your cash unless you are aware so yes you can sell puts in a margin account and you can buy stocks with your buying power with your margin as well and do covered calls on them I used to do that and yes at the beginning it outweighs the interest but if the stock drops 20% you can no longer collect decent premiums at the strike of your initial purchase price so in that case it does not outweigh the interest
Thanks for this video. Needed to see this
Thanks hope.its helpful, open a questrade margin account so.you can trade options
have they changed the way they calculate margin call? I dont see Maint Excess in a TFSA linked margin account
Hi Shihab! Awesome content on your channel. Quick question for you : when a stock is at 30% margin can we get full margin and keep the stock overnight? For example, can I short XYZ with 3 times my capital and keep the position over multi days (assuming the price goes my way)? I ask because some broker, mostly U.S ones, allow only 2 to 1 margin overnight. Thank you for your help.
not sure what you mean?
@@ShihabPersonalFinance Example : I have a 1000$ account. I buy a position worth 3000$. The position is three times my capital. Can I keep this position over multiple days?
Yes you can but you will pay interest on $2,000 plus if the position drops you might get a margin call so you just have to be careful that your maintenance access is above zero all the time, assuming you are buying a 30% margin requirement stock
I didn't know I was actually borrowing USD when I deposited CAD into margin. I kept the CAD in margin and buy USD. For example cash for CAS is $60000, USD is $(44000), it means I borrowed $(44000)? What I need to do is converting $60000 CAD to USD then it will not show $(USD) right? so confused with ME..
yeah your individual cash lines need to be above 0 to avoid interest
ua-cam.com/video/vNeiVx1LGo0/v-deo.html
@@ShihabPersonalFinance thank you!
Do not understand the excel I did try for myself , Is "ME=CASH+(1-MR) * EQUITY" really correct?... why don't you share your excel in google ? that will make your work 100% since a lot of people ask help, which will save same or more amount of time/effort to create same excel for lots of people too.....
Email.me
Hello thank you so much for this video. I just signed up for Questrade and this video was super helpful. I was wondering if you could please share the excel forumula that you used during the video? If not it’s okay, thank you for your work!
Contact info in description below
Hey Shihab, Is there a way we can get a hold of that spreadsheet to calculate ME? an online version of that?
Contact me, description below
@@ShihabPersonalFinance thank you, I've sent an email to your hotmail
Got it, will respond tonight
@@ShihabPersonalFinance Me too Please, Thank you!
So when you put a request to change cad to usd. Do I have to change it again to cad if I want to buy canadian stocks??
Also Can you tell me How long the request takes to convert the funds?
Thanks
Yes in a margin account, if you dont have enough cad cash, but it is not recommended to go back and forth several times because of conversion fee, takes one business day
@@ShihabPersonalFinance Thanks *
@@harwinderthakur9708 anytime
@@ShihabPersonalFinance by the time the conversion is done the next business day, the opportunity is gone! My question is why would I use the cash in a margin account only to pay taxes on gains I make, instead of leaving the cash to use only towards MR? Any asset I want to buy using only cash will be from a tax-sheltered account. or am I missing something? TY
This might sound silly but is there a way that broker allow additional days before force close your position in hoping the stock will go back up over little time ?
I think they give you 3 to 7 days, but not always guaranteed, I guess it depends on the situation, how deep your margin call is
can yo do the same video but with option trading? Would the same concept apply with options as it does in this video with stocks?
No you cant buy options on margin, if you want to buy options, you will be using your cash, so your maintenance excess
Hello, I am a new trader and i traded spy , now i have been charged 160 usd as it showed i borrowed it, i already put on request to convert vad to usd , but now how to avoid paying interest on it ?
To avoid interest, your individual cash balances cannot be negative
amazing info
Email me, link in description below the video
How do you calculate the deposit amount, if you don't hold cash and used the cash to buy stocks already? Would the deposit amount be then equal to my total equity? If so, what if the stock prices fluctuates causing my total equity to fluctuate?
Not sure what you mean deposit amount, as in how much you actually deposited into the account? You can see that under report/account activity
Best explanation! Thank you so much. Is there any way to get the spreadsheet?
Email me
@@ShihabPersonalFinance address please?
Description below the video or about me section of the channel
@@ShihabPersonalFinance Hey, I’ve done that. Hoping to hear from you. Thank you.
Very good information amazing job bro.
Thanks
Can you trade pinks OTC. On a ETF account also commission on Canadian otc s.
Can you make a short video on questrade mobile app , demo trading a spread, I can’t find much online about what it looks like .
thanks for the video idea
Thanks for the informative video.
Does the 2-day settlement period apply to a negative cash situation? I mean if cash is deposited within 2 days, would it still count as borrowing and accrue interest?
Interest is accrued every day as long as you have a negative balance
If u buy and sell same day, then no interest
Hi, is you blog site down? I was wondering if you could share the excel sheet, thanks
Ya will be back up after August 25th
Thanks for the informational video, on Questrade's website they say all your cash will be used first before using any margin, meaning all my trades would be in cash because I would need to have a minimum of 30% in cash to use margin? Doesn't that take away much of the margin's capabilities? I would include an example, please let me know if I am mistaken or correct.
$Fb - $100/share Long Mr: 30%
Cash - $1000
Buying power: 3,333.33
So wouldn't I not be able to purchase the 11th share, because at the 10th share I used all my cash? If so I won't be able to get the 11th because I don't have any cash left to meet the 30% margin requirement. Is that correct?
Hard to explain in a comment but if you re-watch the video I explain this example but say you have $1,000 cash you can spend up to $3,333 to buy a 30% margin requirement stock but since you only have $1,000 cash the difference will be borrowed money so your cash line will drop by $3,333 but you would have $1,000 positive so you're left with negative $2,333 you'll be paying interest on $2,333 but you don't have to use all your buying power if you can stop at 1000 if that's your cash line make sure that number of shares X share price equals a thousand there for you won't pay interest but you can always go over depending on the margin requirement
@@ShihabPersonalFinance ahh ok it's more clear now, so even if you have 0 cash, you can still use enter a new trade as long as your main excess is above zero?
Like I would be able to take another trade if this were the current state of my account at 16:55, and I'm good as long as my already entered positions don't decline too much. I think I got it, seem to make sense?
Yes exactly, all about the maintenance excess, but you also have to give room in case.your.positions.drop
@@ShihabPersonalFinance ahh okk, thanks for your responsiveness, salute!
nicely explained. Do you have any videos uploaded on brokers in Canada
and their leverage?
What do you mean leverage?
@@ShihabPersonalFinance sir, all I want to know is if there is any good broker that gives a leverage of 50:1 on trading stocks cfds.
No way, not that I know of
Thanks, so to pay back the borrowed money I can just fund my account? Right now I am red under CAD cash.
Ya you can deposit money or convert usd if you have or sell positions you dont want
why is Ugaz and Dgaz 100%? Is there a way to change that?
no you cant change that, that means it is not that safe, and the broker requires you to use all cash for these stocks, I think ugaz and dgaz is triple leveraged etfs, these are intended for day trading, not to hold overnight
great video thank you. can you make one about tfsa margin power?
Ya sure
Nice explanation and tutorial! I’ve never used quest trade before so it was interesting seeing it like this.
Thanks, what do you use ?
Shihab's Blog I have been using Fidelity but have used TD Ameritrade, Robinhood, and Acorns in the past.
Oh ok you are American resident, you guys have the best commissions
Shihab's Blog yes, sir. I should have mentioned that. I’m in the US.
@@StockInvestmentAnalysis cool, I like your thumbnails
Do I need to keep cash in my margin account for them to get paid the interest I'm being charged?
No, you just need to have a positive maintenance excess, but your interest will decrease your cash, and you will pay interest on interest next month
Thanks it was really helpful.
Glad to hear that
My question is I have 1000 CAD and I borrow money from questrade like 400 USD and my 1000 CAD is untouched so I can exchange the 1000 CAD in USD ?
Yes, if you have a negative 400usd in your usd cash line, you will pay interest
Great video !
great explanation, thank you
Thanks
If i buy US stock in morning and sell it before market close what will happen assuming i have no USD in my quest trade account. Thanks.
Should be fine no interest charged, as long as your usd cash line is above 0, assuming you make a profit on your trade 😁
@@ShihabPersonalFinance Yes making profit thats the goal.Thanks for your help.
Give it a try let me know
HI, did you ever had an issue to borrowing ( short ) stock with QUESTRADE?
I never tried to short stock with questrade
Great video thanks for all your work and effort
Thanks
Great Video! I just have one question, Is it possible to transfer all my money from my Margin account to my TFSA account? I accidentally opened a Margin account when I meant to open a TFSA account and I want to close the Margin account and just have the TFSA account.
Yes it is possible of course, under accounts/requests/transfer funds
Love this video, finally explained clearly. Can I get a copy of that spreadsheet?
Email me
@@ShihabPersonalFinance thanks, I found your blog already and emailed you. Keep up the great content!
@shihab’s blog so the interest on the margin will be around 3 percent daily? And the prime interest will just be charged at the beginning or end or both?
Do you think that I should I transfer my account from questrade to interactive brokers?
If you are an active trader, it has cheaper commissions, and better margin interest rate, but harder interface to use, and no inceeased margin buying power by leveragin your tfsa
Great explanation. Tx
😀
How do you pay your taxes on business income(day trading) in Canada? For day trading should I incorporate or can I trade as an individual?
You can trade as an individual, and your gains will as income and taxed based on your tax bracket
@@ShihabPersonalFinance Thanks. Can you please tell me under which field in the form should this be reported? and is the form no. T1?
You will need to fill out t2125 business form.
@@ShihabPersonalFinance Got it.Thank You. So basically I will have to fill T2125 and attach along with the personal income tax form like T1. I looked at the t2125 form and there are fields like Business name and Business number etc, are these fields mandatory? For people who trade as individuals they won't have a business name or number, hence asking.
No just put your name, t2125 is a form part of the t1
First off Mr. Shibab, thanks for sharing your wealth of knowledge! I am a new investor looking at penny stocks. Got one in mind but want to use my cash only. How do I go about? Do I have to exchange? It's USD
Yeah if you want to use your cash only and not the interest and it's a u.s. stock then you should convert the Canadian to US and then your true buying power is your cash so don't go over your cash and you won't be paying interest
@@ShihabPersonalFinance wow Mr. Shibab thanks for the quick response. I also read that a broker can sell your shares in a margin account without your approval/consent. Is that true?
Only if you are in a margin call but you usually have 3 Days To Take Action if you are in a marginal call that happens when your maintenance access Falls below zero but she only use your cash to trade with then you'll never be placed in a margin call you'll get a margin call if you borrow money from the broker and you lose it can you drop below a certain point then in that case you get a margin call if you don't take action and deposit more money the broker will sell your shares to generate the cash
Great video!! Very informative - thank you so much. Is the ME template available for download?
Ya send me an email
@@ShihabPersonalFinance Shared video to facebook!
Ah great thanks!
Thank you
You're welcome
Would it be safe to borrow and sell for day trade? Would the interest kill the earning?
Day trade? As in closing your position before market close? There wouldn't be interest in that case.
So how does buying power get determined here? Lets say I have 30k in the account, and 20k of that money is invested in some stocks, can I use the 20k as a leverage and my total buying power would be around 90k on 30% stocks? Or does it only take the available cash as a leverage?
based on your stocks as well, but depends on the margin requirement of those already purchased stocks
Hey man great video! Subbed to your channel as I use QT exclusively.
Thank you