Great clarification! You're better than hundreds of customer service representatives who I talked to them and they couldn't`t clarify the margin and cash accounts as you did!
Cash. Limits with capital, no shorts, but if the trade goes south I'm not "wasting" day trades. Totally worth it to me. The ability to get out of trades and more importantly having the ability to size in and scale out is far worth being limited with cap.
I think the biggest benefit is the no-settlement when using Margin. You can buy and sell back and forth all day long without having to wait the 1-3 days as you do in a cash account. This point is often overlooked and is the reason I love margin. Also, as long as you have 25K in a margin account you are not subject to the PDT rule. Both good points to add to this video.
so when u have to wait 1-3 days is that how long for cash to settle for wins and losses or do i have to wait 1-3 days after every trade like i buy 10k worth of a stock but i sell instantly for some reason do i have to wait 1-3 day to get my 10k right back? or is the 1-3 days just for loses and gains
I'm using mine as a cash account. I just learned that the PDT rule doesn't apply to cash accounts, and wow, pretty glad to hear that! I never trade my full cash amount, because I'm on the cautious side...I only trade what I think I won't hate losing, although honestly, I would hate losing anything! It's less important to earn fast for me, and more important to learn and apply what I'm learning as I go. I'm pretty sure I won't be anyone's "next" millionaire! I don't doubt I'll get there eventually, because I find this very interesting and fun. That's always guaranteed to keep my interest, in anything. But...I just won't be next. Not right now, anyway. Oh, shoot! Edited to add thank you, Tim, for another great video.
Cash. Sykes made his 1st million going long and I'd rather get really good at going long before shorting which is marked as advanced in The Complete Penny Stock Course. Also I'll never use leverage.
I’ve had a margin account on Robinhood for several years of Buy and Hold. I love it for instant funding from my checking account and instant proceeds from sales (and never used it for leverage). I just opened a cash account with TD Ameritrade to get around the Pattern Day Trading law and I hate the 3 day delay in funding (especially because it’s coming out of a TD Bank account). I also hate waiting 3 days before I can re-invest the proceeds from any stock sales. I’ll probably convert it to a margin account and limit myself to 6 day trades per week max (3 on each account) and concentrate on Swing Trades.
Margin every trade is made with a trailing stop loss, long and short has been very profitable over the last couple of months to the tune of tripling my account, as you mentioned cutting your losses early and having a plan that lets your winners run is key, no plan equals no money left in a very short period of time
Hi Tim, great video as usual. I have a Scheab Cash Brokerage Account. Apaet from oit being comission free, Schwab requires 2 days for a trade to settle. What I do to trade everyday is to use half of my account total each day. For example, if my account is $8K on Sunday, and my "settled" funds are also the $8K, on Monday I will only use $4K of the $8K. This enables me to still trade on Tuesdaywith the remaining$4K of the $8K. On Wednesday, the $4K I used on Monday, plus whatever gain or loss on Monday, has settled and I can use that $4K from Monday again now on Wednesday. The same applies to the $4K I used on Tueday, those funds settle and are available Thursday. In turn and lastly, Fridays settled funds are from the funds I used Wednesday. Hopefully this helps. It works for me and Schwab doesn't get to make money off of me.
I like the "cut's both ways" reference - just made $2200 trading today so i'm feeling good. Keep up the good work. i think you could've elaborated a bit more about the cash accounts not abiding by the pattern day trade rule with a few examples of how to circumvent it though.
I just opened an account on CMEG. I’ve been practicing a demo mode for about 3 months and typically get about 15% a week and I’m going to use a margin with $1,600
for me as a newbie I'll stick to cash account till I build it up to over 25,000 then switch to margin so I can trade more often than fear PDT strikes against me LOL ..good video
from what i learned in this video it doesn't matter how much money you have in cash. If you have a 3-1 margin account and with your 25k you buy 75K 1$ shares you need to cut your losses before the share reach 0.66% of its original value. If it reach 0.66% you will lose your 25k so from my perspective its even worst to put more money in there unless you know what you are doing. But I get your point. You probably want to use that time to learn and use that experience so when you'll have 25k you'll be more confident.
There is something not usually covered when talking about Margin/Cash account differences: Margin also implies a margin rate (fees), so you will have to pay a monthly amount for that leverage.
@@moonlightnewbie6599 No fees in margin accounts just to have one or if you only use your actual cash in the margin account. Once you borrow money using margin money from your broker to buy then the amount borrowed is charged a fee.
A couple of questions. 1)Since margin is essentially a loan, are there interest fees on that loan even if you close the position before the end of the day? 2) If I choose to get a margin account solely for the purpose of keeping my money from being tied up during the settlement period, does the margin automatically get applied to every purchase or can I choose not to use the available leverage? Btw, I currently use a paper account.
Tim, with a cash account if you're good with your money you can have £1500 in your account and use half to trade in a Monday. Use the other half to trade in Tuesday and then by Wednesday Monday's money will be available. On Thursday Tuesday's money will be available and so on ...
good, but he says you can't do day trading stocks with cash account, that's a huge problem. and the limit of 3 trade in a week is nonsense with margin account🤦🤦
Wow this was very insightful I've been confused about how margin works exactly and you broke it down to a T. I feel more comfortable starting my margin account now. Also I never knew that the reason why I've never been able to short or sell puts is because I'm working off of a cash account. Thanks some great info there. Thank you
THAT'S why I've never come across the Pattern Day Trade rule. I'm cash and have a 2-3 day settlement period. 3 months in every. Single. Day and I'm up $749 YTD thanks to the Tims!
@@jhonnyarvilla4687 Sure! I'm a newbie, so maybe I'm using the wrong terminology. If I make a Full trade on Monday, those funds won't settle until Thursday morning. Now, I CAN reinvest those funds before Thursday but I messed up once and traded on unsettled funds one too many times and E-Trade took away my sweep account for 90 days. I had to wait for funds to settle before making a trade, which ended up being good because it forced me to take more time and layout my plan better before trading. Maybe trading on unsettled funds would be a good topic for an upcoming video?. Hope that provides clarity.
I use my cash account for long trades. With my account size and position sizes I usually end up with being able to do about 8 trades a week. I rarely do that many though. It's T+2 so when I buy and sell Monday those funds are available again Wednesday morning. Don't trade with the unsettled funds with a cash account or you'll get a good faith violation. It's similar to PDT you'll get a 90 day Restriction if you do it 4 times in a year. I'm a little unsure on what exactly the restriction is. Never been restricted, but I have gotten a couple good faith violations. Just use them wisely if you're going to take one. Make it on a trade that's worth it and don't do more than 3.
James Scott Thank you very good explanation as well right now I took a step behind because I felt I was more gambling than trading and that is not a good sign to be a successful trader I’m here for the long run so I’m reading a couple books all related with Timothy Sykes my inspiration trader and when I’m done I will get back on the action thanks again for the verification
When I opened my Webull account, I did not know what a margin account was. So glad I went with it. Even though I never trade more than the cash I have in the account.
i hope you understood, my point to make many trades aday ( sell and buy many times , but using my money ) i need the margin to trade many times during day
Could you simply use a margin account to avoid settlement periods and only stick to the amount available within your account when taking long positions?
@@asdf14051 so let’s say I have 30k cash in my margin account and I want to buy shares worth of 10k (with my own cash) would I be subject to PDT rule now that I only have 20k left or not until I close my position? Thank you
Cash account so I am not limited by the PDT rule. At this point I am learning and growing a small account. Once I am more consistent and/or I want to learn about shorting I will likely use a margin account. I am not in a hurry. I trade now to learn and build a skill, not to "get rich quick"
Thanks for explaining about day trading in a cash account! But please confirm this for me. I want to make sure I'm not confused -- If someone trades daily in that cash account, with settled funds, they will still not be listed as a pattern day trader?
Cash, I am about 2 years into and still very new into trading. watching your pre market everyday. learning how to start swing trading as i had been doing only day trades small and only a few as i am still on the PDT rule
Hi, I'm about to start long terminvestment and I'm in the process of opening an account. For Now, I just want to put money in index funds. Should I go for cash?
Cash. I´m from Sweden and we have no marginaccounts or buyingpower here. We also have no PDT-rule and we even have a special type of account where we pay a yearly tax of ablut 1,4% of our the total balance of the account and for that we dont pay any tax on our winnings.
I'm looking for more clarity on shorting stock on margin. If you're shorting a stock using a stoploss with say, 1% risk ( 1% of 1:3 leverage, $3000). Isn't the risk limited to $300 if the stop is hit?
I have a cash account to get around the PDT rule. I keep extra money in my account that I do not use unless an equivalent amount is returning to my account, to give me a little more freedom trading. but it's unfortunate I can't short. When I make enough to get away from the PDT rule I plan to switch to margin.
Thank you Tim, as a beginner trader I greatly appreciate this info. Question: I've chosen to start my brokerage account with Webull and it gives me four account types options when signing up, and those options are: Individual, Joint, IRA, & Futures. I'm assuming that I should sign up for either an Individual Margin Account or a Joint Margin Account, am I correct with this assumption? And what's your advice on Individual versus Joint Accounts (is it best to day-trade solely, or should a do a joint account with my wife?)?
Better video than what I've seen so far. I wished you had gone further in your example. What happens when your "1$" stock drops below what level ? Your broker automatically closes positions, in which order, etc... And Overnight fees... can't talk about margin accounts and not mention that.
I'm happy to follow you , my question is , my account is margin and i have 35 k $ , so can i use for example 10 k to trade ( buy and sell many times a day ) does margin mean that i use broker money ) so if i lost stocks , do i use my money or use broker money , ? but as i know i only use 10k , but if i use the while 35 k , am i still in safe area of margin , my point i want to trade with my money only , i do not want to use broker money , also will broker take intrest ? sorry many questions
Nice explanation video! Thanks for sharing knowledge. 2 things to make the production better : Its night and the white backround screen is hurting the eyes. There's a lot of reverb and also a buzzing sound throughout the video
That's very informative, thanks. I have some questions here. 1. Can I have both cash and margin acc at the same time? 2. Or if I open a cash acc first, after being comfortable then switch to a margin acc? 3. Or if I open one of the acc with money parking there. But haven't started to trade, says one or two weeks. Will I have any fee involve like maintaining fee or so? Thanks
Thanks for all the great video's, Working on increasing my knowledge account before I get started.. I'd prefer to lean towards a cash account but wouldn't mind trading every day though.. Are their any loop holes to do this? I'm curious because swing trades don't always work with penny stocks and I'd prefer to get in and get out like a sniper while still staying long for now.. Much love to all of you at Stocks to Trade and Tim Sykes!
Okay so I'm confused on something. If I have a margen account, and say I have 30k in my account. If I am only buying with less than 30k at a time, do I not have to worry about leverage? I just want to trade my own money, I don't want to borrow money to trade.
I needed a margin account to sell covered calls and other options plays. I rarely use leverage or actively day trade. In light of recent crashes of banks and exchanges (SVB, FTX, etc), does a margin account open me to additional risks over a cash only account during bank runs and failures of my brokerage firm (fungibility of account assets, FDIC applicability, etc)? PS I use Fidelity. Thanks!
My experience is that with cash account you cant really make fast paced trading. Problem is that you cant make as many trades when you dont get your money back immediately. For beginners this might be good, because you really have to find those opportunities, where you have big run and can make significant profits with only couple of trades each day. But when I started to trade with cash account, I quickly found out that it made me chase those longer runs, even tho I had clear "wall" ahead of me. With margin account you can always take your profits out and wait for confirmation (for example if price exceeds earlier top). You can also minimize your losses easier with margin account, because you can always buy position back later with lower price, if opportunity is there. In other words it is a lot easier to utilize many smaller moves inside big move, which makes your trading less risky business. Truth is that traders with margin accounts have significant edge in short term trading when compared to cash accounts. Trading with cash account had huge effect on my ability to take those small winners out, because it made me always chase that break, which ofcourse doesn't always happen. You need available funds if you want to make profits and practice trading😎
@@filmorgadi4351 it depends on where you are located. If you are in US, the you need to choose between depositing 25k or use cash account. If you live outside US for example in EU you can go around PDT rule by choosing right broker that has office outside US and dont follow PDT rule. For example you can use brokers like Tradezero without PDT (I used it for executions on start). I used 2 different brokers, one for better charting tools (IB) and Trazero for using margin.
@@Nigoliz i am from Chile, and i just opened a bank account in Usa to invest with interactive broker. i "ll do day trading mostly with stocks not options , but the rules to do this are so unfriendly for beginners under 25 k.. . do you thing the best for me is to open 2 diferent broker in Usa with margin account 5 k every one , till i"ll get over 25k? couse with cash account is not allowed to close position in a day.
Cash account webull. Just curious now i can buy then sell in 3 days if i want correct? Or do I have to hold longer? Thank You to whoever can help me out...Just so I'm 100% sure I'm not doing wrong.....Good video subbed
Margin depends on what stock you have in your potfolio if its marginal or not. Many of the EV stocks are not marginable except Tesla which gives 40 % extra purchasing power then its value while carnival cruise gives 50 % more purchasing power and Nio gives you no extra power. So it depends what stock you have to get increase in margin purchasing power as all stocks are not marginable.
To make sure I understand this correctly, if you are a beginner in trading, its better to use a cash account, is that correct? and once you gain experience you can switch into a margins account. right?
My TD Ameritrade account: Cash available balance: $125,000 Margin available balance: $115,000 How much can I pull out right now for personal use???? I’m confused
So I have over $25,000 net I could open a margin account and just use my cash I have to trade and there won’t be any Violations for day-trading? There isn’t a 2 day settlement period for a margin account?
A friend of mine recently told me that I don't have to sell my stocks to trade futures in Interactive Brokers because it serves as security. This is true?
I have a margin account. I funded it with cash and never borrowed more than what I had contributed to the account. My positions all paid in cash by me have gone down with the market. My broker is charging me interest plus they claim I owe them for 70% of the portfolio value. Does that sound right to you?
Would I be able to purchase over the counter stocks using a Registered TFSA Investment account? Or would i need to open a cash or margin account? If so, which company should I go with to open a cash or margin account?
Do you use a cash account or a margin? Just real quick, comment cash or margin. I want to know what most of you are using!
Cash account
Cash money baby!
cash account with etrade
Cash
Is stt broker intergrated?
hard to find such people like Tim explaining complicated things in an easy way for begginers. Thank you
I feel better now knowing the difference and understanding the meaning between both what margin is and what cash is
Great clarification! You're better than hundreds of customer service representatives who I talked to them and they couldn't`t clarify the margin and cash accounts as you did!
Appreciate it!!
Using cash account with interactive brokers
How much u need to spx short call in interactive brokers???
Cash. Limits with capital, no shorts, but if the trade goes south I'm not "wasting" day trades. Totally worth it to me. The ability to get out of trades and more importantly having the ability to size in and scale out is far worth being limited with cap.
So if you have a loss on a trade and you sell do you still have to wait for your funds to settle again even if you took a loss?
hi, what about the limit of 3 trades limit in 5 days?? , it is too litlle..
we could trade just 3 times in a week with margin account???
Yes@@knowledgeisinfinite2524
I think the biggest benefit is the no-settlement when using Margin. You can buy and sell back and forth all day long without having to wait the 1-3 days as you do in a cash account. This point is often overlooked and is the reason I love margin. Also, as long as you have 25K in a margin account you are not subject to the PDT rule. Both good points to add to this video.
so when u have to wait 1-3 days is that how long for cash to settle for wins and losses or do i have to wait 1-3 days after every trade like i buy 10k worth of a stock but i sell instantly for some reason do i have to wait 1-3 day to get my 10k right back? or is the 1-3 days just for loses and gains
I'm going to start with a cash account and then move onto a margin account if I ever end up shorting. I feel like this is a good safe start.
I'm using mine as a cash account. I just learned that the PDT rule doesn't apply to cash accounts, and wow, pretty glad to hear that! I never trade my full cash amount, because I'm on the cautious side...I only trade what I think I won't hate losing, although honestly, I would hate losing anything! It's less important to earn fast for me, and more important to learn and apply what I'm learning as I go. I'm pretty sure I won't be anyone's "next" millionaire! I don't doubt I'll get there eventually, because I find this very interesting and fun. That's always guaranteed to keep my interest, in anything. But...I just won't be next. Not right now, anyway. Oh, shoot! Edited to add thank you, Tim, for another great video.
Glad you're learning!!
Cash. Sykes made his 1st million going long and I'd rather get really good at going long before shorting which is marked as advanced in The Complete Penny Stock Course. Also I'll never use leverage.
never knew a margin account could be a friend. thx Tim for letting us know that
or can be a foe (opponent)
I’ve had a margin account on Robinhood for several years of Buy and Hold. I love it for instant funding from my checking account and instant proceeds from sales (and never used it for leverage). I just opened a cash account with TD Ameritrade to get around the Pattern Day Trading law and I hate the 3 day delay in funding (especially because it’s coming out of a TD Bank account). I also hate waiting 3 days before I can re-invest the proceeds from any stock sales. I’ll probably convert it to a margin account and limit myself to 6 day trades per week max (3 on each account) and concentrate on Swing Trades.
Thanks for the help! I was struggling to staying above the PDT rule. Decided to change to a cash account because I do not necessarily trade every day.
I do not use any accaunt, for now I only study I look at the market and analyze the pattern.
Oinotna Iramida did you start trading by now and how is your experience?
Margin every trade is made with a trailing stop loss, long and short has been very profitable over the last couple of months to the tune of tripling my account, as you mentioned cutting your losses early and having a plan that lets your winners run is key, no plan equals no money left in a very short period of time
hi, what about the limit of 3 trades limit in 5 days?? , it is too litlle..
we could trade just 3 times in a week with margin account???
Hi Tim, great video as usual. I have a Scheab Cash Brokerage Account. Apaet from oit being comission free, Schwab requires 2 days for a trade to settle. What I do to trade everyday is to use half of my account total each day. For example, if my account is $8K on Sunday, and my "settled" funds are also the $8K, on Monday I will only use $4K of the $8K. This enables me to still trade on Tuesdaywith the remaining$4K of the $8K. On Wednesday, the $4K I used on Monday, plus whatever gain or loss on Monday, has settled and I can use that $4K from Monday again now on Wednesday. The same applies to the $4K I used on Tueday, those funds settle and are available Thursday. In turn and lastly, Fridays settled funds are from the funds I used Wednesday. Hopefully this helps. It works for me and Schwab doesn't get to make money off of me.
I trade Cash in my personal account...
But in my 401k I have limited margin account, no shorting..big thanks Tim... Keepem coming
I like the "cut's both ways" reference - just made $2200 trading today so i'm feeling good. Keep up the good work. i think you could've elaborated a bit more about the cash accounts not abiding by the pattern day trade rule with a few examples of how to circumvent it though.
So is margin better or cash
Cash account with IBKR. Best option for beginners!
Tradestation=margin option level3 Etrade=cash account
Study harddd!
I just opened an account on CMEG. I’ve been practicing a demo mode for about 3 months and typically get about 15% a week and I’m going to use a margin with $1,600
Awesome!
for me as a newbie I'll stick to cash account till I build it up to over 25,000 then switch to margin so I can trade more often than fear PDT strikes against me LOL ..good video
Have you switched yet ?
from what i learned in this video it doesn't matter how much money you have in cash. If you have a 3-1 margin account and with your 25k you buy 75K 1$ shares you need to cut your losses before the share reach 0.66% of its original value. If it reach 0.66% you will lose your 25k so from my perspective its even worst to put more money in there unless you know what you are doing. But I get your point. You probably want to use that time to learn and use that experience so when you'll have 25k you'll be more confident.
Thank you for helping me take a decision. I will start with a cash account once im done with paper trading.
There is something not usually covered when talking about Margin/Cash account differences: Margin also implies a margin rate (fees), so you will have to pay a monthly amount for that leverage.
Is this even if you don’t borrow more than your cash amount?
@@moonlightnewbie6599 No fees in margin accounts just to have one or if you only use your actual cash in the margin account. Once you borrow money using margin money from your broker to buy then the amount borrowed is charged a fee.
A couple of questions.
1)Since margin is essentially a loan, are there interest fees on that loan even if you close the position before the end of the day?
2) If I choose to get a margin account solely for the purpose of keeping my money from being tied up during the settlement period, does the margin automatically get applied to every purchase or can I choose not to use the available leverage?
Btw, I currently use a paper account.
Tim, with a cash account if you're good with your money you can have £1500 in your account and use half to trade in a Monday. Use the other half to trade in Tuesday and then by Wednesday Monday's money will be available. On Thursday Tuesday's money will be available and so on ...
good, but he says you can't do day trading stocks with cash account, that's a huge problem.
and the limit of 3 trade in a week is nonsense with margin account🤦🤦
I have a cash account, and thank you very much for clearing this up!!
Wayne Hanson how do i open a cash account whats ur broker
Wow this was very insightful I've been confused about how margin works exactly and you broke it down to a T. I feel more comfortable starting my margin account now. Also I never knew that the reason why I've never been able to short or sell puts is because I'm working off of a cash account. Thanks some great info there. Thank you
Glad I found this video, looking into webull and I didn't know the difference...as a newbie a cash account seems like the way to go
Glad it was helpful!
THAT'S why I've never come across the Pattern Day Trade rule. I'm cash and have a 2-3 day settlement period. 3 months in every. Single. Day and I'm up $749 YTD thanks to the Tims!
Barry W can you explain what is 2-3 day settlement?
@@jhonnyarvilla4687 Sure! I'm a newbie, so maybe I'm using the wrong terminology. If I make a Full trade on Monday, those funds won't settle until Thursday morning. Now, I CAN reinvest those funds before Thursday but I messed up once and traded on unsettled funds one too many times and E-Trade took away my sweep account for 90 days. I had to wait for funds to settle before making a trade, which ended up being good because it forced me to take more time and layout my plan better before trading. Maybe trading on unsettled funds would be a good topic for an upcoming video?. Hope that provides clarity.
Barry W thank you for explain this to me very helpful
I use my cash account for long trades. With my account size and position sizes I usually end up with being able to do about 8 trades a week. I rarely do that many though. It's T+2 so when I buy and sell Monday those funds are available again Wednesday morning. Don't trade with the unsettled funds with a cash account or you'll get a good faith violation. It's similar to PDT you'll get a 90 day
Restriction if you do it 4 times in a year. I'm a little unsure on what exactly the restriction is. Never been restricted, but I have gotten a couple good faith violations. Just use them wisely if you're going to take one. Make it on a trade that's worth it and don't do more than 3.
James Scott Thank you very good explanation as well right now I took a step behind because I felt I was more gambling than trading and that is not a good sign to be a successful trader I’m here for the long run so I’m reading a couple books all related with Timothy Sykes my inspiration trader and when I’m done I will get back on the action thanks again for the verification
Just opened a margin, can I just use my cash level to buy stocks and avoid investing leverage amount?
I've got the same question
@@affanr6041 Me too
Of course you can, you are never required to use margin.
When I opened my Webull account, I did not know what a margin account was. So glad I went with it. Even though I never trade more than the cash I have in the account.
i hope you understood, my point to make many trades aday ( sell and buy many times , but using my money ) i need the margin to trade many times during day
I think long bias traders would go for a cash account, and short bias/leverage traders would go for a margin.
you answered all my questions i had about this topic. Thank you a lot! great job!
Glad it was helpful!
Could you simply use a margin account to avoid settlement periods and only stick to the amount available within your account when taking long positions?
Yes, but you would be subject to the PDT rule if you have less than 25k
@@asdf14051 so let’s say I have 30k cash in my margin account and I want to buy shares worth of 10k (with my own cash) would I be subject to PDT rule now that I only have 20k left or not until I close my position? Thank you
@@kirans5519 as long as all your positions plus the money in your account is over 25k at market close you’ll be fine
@@asdf14051 awesome thank you !!!
@@asdf14051 with cash account i cant sell a stock in a day trading, and with margin account a can't trade more than 3 times in a week??
is that true??
You have such a great channel Tim. Thanks for all your videos.
Thanks for the support!
Margin and Cash!! I just transfer to the cash account after I've used my 3 trades in the Margin account.
Thank you for video , it helped me to choose right account.
Awesome! You're welcome
Cash account so I am not limited by the PDT rule. At this point I am learning and growing a small account. Once I am more consistent and/or I want to learn about shorting I will likely use a margin account. I am not in a hurry. I trade now to learn and build a skill, not to "get rich quick"
This is quickly becoming my new favorite UA-cam channel
Thanks for explaining about day trading in a cash account! But please confirm this for me. I want to make sure I'm not confused -- If someone trades daily in that cash account, with settled funds, they will still not be listed as a pattern day trader?
Study Study Study! Excellent question
When you say "short stocks" are you referring to buying put options, or using stocks to short?
study study!
Cash, I am about 2 years into and still very new into trading. watching your pre market everyday. learning how to start swing trading as i had been doing only day trades small and only a few as i am still on the PDT rule
Hi, I'm about to start long terminvestment and I'm in the process of opening an account. For Now, I just want to put money in index funds. Should I go for cash?
I have a cash account with td ameritrade and I am subject to the PDT rule. So are you wrong or am I missing something/?
Following
Thanks for the info Tim. My Question : Can I buy a vertical call or put with a cash account?
🙌👏
Thank you for explaining the difference! I'll probably start cash ♡
Once again, thanks for the great guidance Tim. Always a pleasure.
Excellent video and very high quality. Liked and subscribed. Thank you for the information.
Awesome video! Thanks for the help!
Cash. I´m from Sweden and we have no marginaccounts or buyingpower here. We also have no PDT-rule and we even have a special type of account where we pay a yearly tax of ablut 1,4% of our the total balance of the account and for that we dont pay any tax on our winnings.
Really? I live in Denmark. Would love to hear more informion if you could pm me please
Damn.
I am moving to Sweden
@@cazfox1499 I am living in italia does ptd rules apply on me?
Sana all😆
I'm looking for more clarity on shorting stock on margin.
If you're shorting a stock using a stoploss with say, 1% risk ( 1% of 1:3 leverage, $3000). Isn't the risk limited to $300 if the stop is hit?
Amazing how I clicked off about ten youtube videos before yours cos of whispering voices. Clear voice in your channel is catching.
I am lucky I found this channel as a new trader, thanks man !
I have a cash account to get around the PDT rule. I keep extra money in my account that I do not use unless an equivalent amount is returning to my account, to give me a little more freedom trading. but it's unfortunate I can't short. When I make enough to get away from the PDT rule I plan to switch to margin.
Thank you Tim, as a beginner trader I greatly appreciate this info. Question: I've chosen to start my brokerage account with Webull and it gives me four account types options when signing up, and those options are: Individual, Joint, IRA, & Futures. I'm assuming that I should sign up for either an Individual Margin Account or a Joint Margin Account, am I correct with this assumption? And what's your advice on Individual versus Joint Accounts (is it best to day-trade solely, or should a do a joint account with my wife?)?
That's a really good question! Message us at support@stockstotrade.com for specific support.
so if we go with Margain account can I just buy at my cash flow level?
Yes. You can have a margin account without actually using leverage.
You absolutely answered my question. I’m opening an account with Merill for retirement mostly
Margin, avoids forcing me to trade with settled funds only.
i cant seem to trade because my settled cash is 00.00 but i have 1000 buying power , could you help with this ?
@@randylep you have to wait two days after you trade.
@@siershoots3565 yea switched to IG thanks tho
Appreciate the direction and deep knowledge 💯 🙏 👌.
Thank you!!
I use a margin account. Always get out of losing trades quickly so I don’t lose it all. 6:27
Better video than what I've seen so far. I wished you had gone further in your example. What happens when your "1$" stock drops below what level ? Your broker automatically closes positions, in which order, etc... And Overnight fees... can't talk about margin accounts and not mention that.
Cash, but using a margin account would be much better -- e.g. leveraged positions, short-selling, more options, etc
with cash account i cant sell a stock in a day trading, and with margin account a can't trade more than 3 times in a week??
is that true??
I'm happy to follow you , my question is , my account is margin and i have 35 k $ , so can i use for example 10 k to trade ( buy and sell many times a day ) does margin mean that i use broker money ) so if i lost stocks , do i use my money or use broker money , ? but as i know i only use 10k , but if i use the while 35 k , am i still in safe area of margin , my point i want to trade with my money only , i do not want to use broker money , also will broker take intrest ? sorry many questions
Thanks Bohen!
Nice explanation video! Thanks for sharing knowledge.
2 things to make the production better :
Its night and the white backround screen is hurting the eyes.
There's a lot of reverb and also a buzzing sound throughout the video
Good explanation.
Glad it was helpful!
Margin account with etrade. Are there fees or interest associated with a margin account?
Thank you for explaining this!
Yeahhh 👌🏾
PMCC require a margin account or can be done on cash account?
I made both started with cash account
Awesome!
That's very informative, thanks. I have some questions here.
1. Can I have both cash and margin acc at the same time?
2. Or if I open a cash acc first, after being comfortable then switch to a margin acc?
3. Or if I open one of the acc with money parking there. But haven't started to trade, says one or two weeks. Will I have any fee involve like maintaining fee or so?
Thanks
Cash account was very useful in the beginning, but after thirteen months - margin was the way to go.
Great explanation! Thank you.
Thanks for all the great video's, Working on increasing my knowledge account before I get started.. I'd prefer to lean towards a cash account but wouldn't mind trading every day though.. Are their any loop holes to do this? I'm curious because swing trades don't always work with penny stocks and I'd prefer to get in and get out like a sniper while still staying long for now.. Much love to all of you at Stocks to Trade and Tim Sykes!
Okay so I'm confused on something. If I have a margen account, and say I have 30k in my account. If I am only buying with less than 30k at a time, do I not have to worry about leverage? I just want to trade my own money, I don't want to borrow money to trade.
I needed a margin account to sell covered calls and other options plays. I rarely use leverage or actively day trade. In light of recent crashes of banks and exchanges (SVB, FTX, etc), does a margin account open me to additional risks over a cash only account during bank runs and failures of my brokerage firm (fungibility of account assets, FDIC applicability, etc)? PS I use Fidelity. Thanks!
My experience is that with cash account you cant really make fast paced trading. Problem is that you cant make as many trades when you dont get your money back immediately. For beginners this might be good, because you really have to find those opportunities, where you have big run and can make significant profits with only couple of trades each day. But when I started to trade with cash account, I quickly found out that it made me chase those longer runs, even tho I had clear "wall" ahead of me. With margin account you can always take your profits out and wait for confirmation (for example if price exceeds earlier top). You can also minimize your losses easier with margin account, because you can always buy position back later with lower price, if opportunity is there. In other words it is a lot easier to utilize many smaller moves inside big move, which makes your trading less risky business. Truth is that traders with margin accounts have significant edge in short term trading when compared to cash accounts. Trading with cash account had huge effect on my ability to take those small winners out, because it made me always chase that break, which ofcourse doesn't always happen. You need available funds if you want to make profits and practice trading😎
Available funds mean margin
hi, what about the limit of 3 trades limit in 5 days?? , it is too litlle..
we could trade just 3 times in a week with margin account???
@@filmorgadi4351 it depends on where you are located. If you are in US, the you need to choose between depositing 25k or use cash account. If you live outside US for example in EU you can go around PDT rule by choosing right broker that has office outside US and dont follow PDT rule. For example you can use brokers like Tradezero without PDT (I used it for executions on start). I used 2 different brokers, one for better charting tools (IB) and Trazero for using margin.
@@Nigoliz i am from Chile, and i just opened a bank account in Usa to invest with interactive broker.
i "ll do day trading mostly with stocks not options , but the rules to do this are so unfriendly for beginners under 25 k..
. do you thing the best for me is to open 2 diferent broker in Usa with margin account 5 k every one , till i"ll get over 25k? couse with cash account is not allowed to close position in a day.
Is there a time limit to how long you can hold margin? I thought you can hold it as long as you want you just pay interest
super helpful, thank you
Cash account webull. Just curious now i can buy then sell in 3 days if i want correct? Or do I have to hold longer? Thank You to whoever can help me out...Just so I'm 100% sure I'm not doing wrong.....Good video subbed
Margin depends on what stock you have in your potfolio if its marginal or not. Many of the EV stocks are not marginable except Tesla which gives 40 % extra purchasing power then its value while carnival cruise gives 50 % more purchasing power and Nio gives you no extra power. So it depends what stock you have to get increase in margin purchasing power as all stocks are not marginable.
To make sure I understand this correctly, if you are a beginner in trading, its better to use a cash account, is that correct? and once you gain experience you can switch into a margins account. right?
I had a friend who gained $1,000,000 on a stock but never pulled it out. The stock later dropped and they lost everything...
Jesus is LORD (YWH)
My TD Ameritrade account:
Cash available balance: $125,000
Margin available balance: $115,000
How much can I pull out right now for personal use????
I’m confused
125k is my understanding. Margin is just the amount your broker is able to loan you for buying assets
@@joseadrianramirez3793 idk but if the brokers lent you money don’t you owe the broker interest plus some of them at available cash?
How long for sold stocks to settle on a cash account with TD Ameritrade?
usually between 1-3 days, from what I have experienced so far
I use both
What's the best leverage a beginner trader can use?
Knowledge & Tools!
hi, what about the limit of 3 trades limit in 5 days?? , it is too litlle..
we could trade just 3 times in a week with margin account???
So I have over $25,000 net I could open a margin account and just use my cash I have to trade and there won’t be any Violations for day-trading? There isn’t a 2 day settlement period for a margin account?
Thank you for explaining this so simply.
A friend of mine recently told me that I don't have to sell my stocks to trade futures in Interactive Brokers because it serves as security. This is true?
I have a margin account. I funded it with cash and never borrowed more than what I had contributed to the account. My positions all paid in cash by me have gone down with the market. My broker is charging me interest plus they claim I owe them for 70% of the portfolio value. Does that sound right to you?
Would I be able to purchase over the counter stocks using a Registered TFSA Investment account? Or would i need to open a cash or margin account? If so, which company should I go with to open a cash or margin account?
I’m trying to figure out which account I’m trying to use for a beginner
I opened a Webull margin account by accident, meant to open a cash account. I’m glad I opened a margin account instead lol
Hello,
Can we trade options on td cash account ?
Thanks
What you mean you can’t short a cash account? Like if you’re in a short play?
So when my money is settled in a cash account then i will be avaible to trade freely with my money?
thank you that was helpful!