I'm also good with that...when I'm lost on any subject, I like to say; "explain it like I'm a 5 year old." I use that to test folks that like to use big words when attempting to teach, explain or just conversate. If they can do that then, I'm more inclined to listen...
I’m not even joking I watched over 5 videos and was more confused then when I started and then watched this video and everything is so clear now your a life saver
Finall after sorting thru channels... I finally found a good teacher on youtube! Subbed :-D do keep up the great work & thanks for your clear breakdown of of info
My dad is a teacher and that makes me respect teachers a lot for the great work they do.and you remind me of him you are a great teacher and plse I pray you enjoy doing it buddy. You are one of the best teachers out here on UA-cam first time I’ve seen your material and I’m really impressed with your methods. Thanks for the sacrifice you making. Always remember you are helping a lot of people who needs your help.
@@claytrader Hey Clay big fan here. Had a question. So I inputted my information in TD Ameritade such as employment, Net Worth, etc.. and it converted my cash account to margin account. How can I revert back to a Cash account from a margin account with TD Ameritrade? Same as George I rather start slow with my own cash.
Hey clay, nice video! I recently got a margin account with Scottrade 2:1. They said the interest is 7%, is that about the standard rate? Also I believe the guy I talked to on the phone said that as long as the position is opened and closed in the same day there is no interest on that money borrowed. Does that sound right? Thanks, I will be looking into your website
I have a margin account and use it as if it’s a cash account. It is nice to see my margin be in the 10s of thousands of dollars. But like the guy said…. RESPECT IT 😎
You explain things in your videos as if your viewer was a 6 year old.... THANK YOU! I need things explained that way. You are the BEST Stock teacher, i'm SO HAPPY I found your page.
Great info clay! like your style, no B.S. just the beginning for me and I really like all of the clarification that you provide within terminology. you are really helping my understanding of multiple scenario and I am a big fan.
Thank you for the feedback. Glad you enjoy my style. When you are ready for all the knitty-gritty details of trading, head here claytrader.com/courses/
Im in crypto for well 1.5 year now. Begining was buying and holding then. Mining and masternoding. Now im on trading cryptos. Not a long time, Im a beginer, but already making some gains. So the next level is margin trading and Ill find the real good explanation at this video of what is a margin trading. And thanks for that good advise. After watching this, ill try that but only with 3 to 5 percent of my totaal gains in stead of 50 to 60 percent. Thanks and subbscribed!!!
@@claytrader i was... I hope I am not anymore . Your memory is godly... whoa. I even have a slightly different name... my fat black face must be a big giveaway.
It’s very easy to get carried away fast. I didn’t feel the pain with me charging credit card back in the days and got caught with my pants down when slammed with a huge statement!! I learned my lesson and moved to Debit card. But once again, found myself in a very similar situation with margin account! Yikes!! Be careful out there 🥺🥺
Hey Clay, good video...subbed. Got some questions for you, or perhaps you could do a video. 1. When you have a margin account, when are you actually using margin? For example, say a trader has $100k in a margin account that is their cash. Are you trading on margin when you have exhausted your $100k capital on stock, or is each trade on margin? EG I buy $100k of Microsoft. I have no cash to buy more, so additional buys are on margin? Or would the first $100k trade in Microsoft be on margin? I find this confusing as some people say you don't need to use your margin and it can be there when you need it, but I don't see any clear explanation on how to put this into practise. 2. Related to 1 above, when you set a prudent Margin Cushion, what percentage would you suggest and is it based on capital? EG I have $100k of 'my' cash in Margin act, and I set my Margin Cushion at 25%. Does that mean I never borrow more than $25k (so $125k total), or does it mean I never borrow more than $75k (so $175k total) and $25k is the emergency reserve cushion? 3. On Interactive Brokers, you can transfer stock positions between Cash and Margin account. If I do this from Cash acct to Margin acct, is transferred stock subject to margin rules if it was bought with cash on the cash account? Thanks for driving it home that margin is serious business...I find the broker information is not clear and so your videos are very appreciated.
I use E*TRADE. I only want to use my own money but I can’t wait for money to clear from multiple trades daily. Is a margin account the answer ? Or will I be paying fees to E*TRADE to cover me until my money clears ?
The money in margin account is separate from the cash account, isn't it? . And to get a loan from the broker I've got to have some money in my margin account or no loan, right?
Watched hundreds of investing videos, spent hours and hours trying to become an expert so I can learn and help create a better future for my family. Go to open a margin account and I can't cause my credit is shit. Bull. Shit.
I really believe I will be good at this if I stick with it and the videos are definitely helpful. Today is the day i decided to really dive in and start learning to prepare myself for when I choose to invest. I invite all insight that is offered.
please do a video on how funds are settled in a margin account, do you have to wait 3 days like a cash account to trade it again? how it affects the day trader making multiple trades per day. thanks in advance i really like your vids
great video! I'd like to ask couple of questions Let's say same example as yours. 1) if I buy 5000$ worth of stocks, is there any interest? 2)If I buy 10000$ worth of stocks, do I have to transfer money to broker account to pay interest? do the brokers charge interest usually daily/monthly basis?
You just need to read the "margin requirements/policies" that every broker outlines. Each can vary in ways, so it's best to just look at them case-by-case.
Did not understand it 1- I have 5000 on my margin account 2 - I can loan 5000 (Now I have 10 000) The question is: If I lose these 10 000, that means that I will have to pay 5000 to broker? Then in what way I need this ? Even if I double the money, I will have to pay broker 10 000, and 10 000 will be mine. This is the same if I would double my 5000 without any loans and fears. Why should I create these problems to myself?
You will only pay the interest to broker plus the money you owe. You double the money, your revenue will be 20000. then you return the 5000 loan back to broker plus the interest. Simple as Water!!
in the end it's still a gamble. more digit means more lose, but if you hit the jackpot you earn big. still earning big have no shortcuts, so earning slowly is still the best way. it's like micro-transactions whatever.
What's the interest rate of the loan? If I put 100% of my account into one stock (I really wouldn't do this), and the company goes out of business and the stock falls to ZERO. Am I now liable to pay back 100% of my loan to the brokerage? Why would they do that? Seems too risky for them. Why would I want to use a loan? Thats not investing. that's speculating. If I am going to do that.. why not buy a house? at least I have solid collateral with a house.
So, if I get it, in laymans terms: You put X amount into this "margin" account, the broker loans you a multiple (the "leverage") of that (the total being called "buying power"). There's an interest rate on the loan ("margin rate"). Ideally you'd be able to make enough gains to make a profit and offset the interest rates. However if you make a loss greater than your original amount, you can end up owing money (as the loan eventually has to be repaid to the original amount?).
There are tons of UA-cam videos out there about "what a Margin account is". I was looking for someone to please explain "How to use" or "execute" a Margin trade.. Margin maintenance requirements, minimum balance requirements to use Margin for both Non-Day trading and Day Trading etc.. Can you please make a video detailing how to "execute a margin trade"? What is the maintenance requirement and how does it work? Also, can investors choose the amount or percentage of margin they want to use? Or does it always have to be a 2:1 ratio? Can I invest $10,000 of my own and only use $2,000 margin instead of $5,000???... Please make a video discussing these things. Thank you so much.
Hi Clay. If you can make that video about executing a margin trade that would be great! Thank you so much.. Can you also make a video explaining Short Sell and Buy to Cover?.. If price rises past what you Sold it Short for by 5 or 10 cents before it drops back down again, is that acceptable or is the investor in trouble even for a 5 or 10 cent fluctuation? How much price fluctuation is allowed using the Short Sell & Buy to Cover strategy?
I'm sure you get this a lot, but how much time do you spend responding to comments? I've never seen this level of dedication to responding to comments. Hopefully more people take a hint from you. Oh, and good video I "knew" (assumed correctly) most of this stuff already, but it's good to get reassured and I learned a few new things like what "leverage" is.
And if i understood the only benefit of a margin account is having the ability to go short and invest more than what you have to your name. Could benefit if you had good information that said a stock was about to go through the roof, but very risky.
I'm trying to learn as much as I can before i start trading and your videos are helping me so much. And it would be much helpful if you inclide some examples and more numbers in explainin. like, for example in this video, examples of how much is the average of margin interests out there. I hope i make sense. english is not my 1st language. Thanks for the videos.
Love how he treats his audience like we are intellectually challenged, and he's absolutely right!
I treat my audience like I treat myself lol
This comment makes my day!!! So true in my case...
I'm also good with that...when I'm lost on any subject, I like to say; "explain it like I'm a 5 year old." I use that to test folks that like to use big words when attempting to teach, explain or just conversate. If they can do that then, I'm more inclined to listen...
😂
😂😂😂😂
I’m not even joking I watched over 5 videos and was more confused then when I started and then watched this video and everything is so clear now your a life saver
Thanks for the feedback. Glad it could help.
Responds to comments 2 years later what a god
haha, I assure you, I'm quite human lol
Same. Almost ready to jump in. This is a great start.
Finall after sorting thru channels... I finally found a good teacher on youtube! Subbed :-D do keep up the great work & thanks for your clear breakdown of of info
Thanks for the kind words. Glad you enjoy!
agreed
My dad is a teacher and that makes me respect teachers a lot for the great work they do.and you remind me of him you are a great teacher and plse I pray you enjoy doing it buddy. You are one of the best teachers out here on UA-cam first time I’ve seen your material and I’m really impressed with your methods. Thanks for the sacrifice you making. Always remember you are helping a lot of people who needs your help.
Thank you for the kind words.
Wonderful job. I feel like I am taking a real class! That's what I am looking for. Thanks Clay.
Thank you. Glad you're finding it helpful.
Pouring gasoline on your money setting it on fire and "poof!" you have more money!
Best metaphor fail of all time!
:-)
LMAO
I honestly couldn't breath for a second there haha
Poof! $$$ gone , in which case , Now you would need a "loan"..
I hate loans. I would stick to cash account as a beginner.
Thanks for enlightening me, Clay!
You're welcome.
Ya kinda like a debit card. Use your margin as a cash account
So I got a margain account but I Applyed As a cash One is that Good? I also got my tsfa as well. Reason why I got the margain account was to buy OTC.
how do you short a stock with a cash account?
@@MultiChrisjb you cant
Great video and a big warning to new investors to stay clear of margin accounts.
Absolutely!
Holy smokes..! Youbarevthe best person with teaching abilities on youtube in my opinion. Thanks alot 👌👌
Cheers
Not for me that. I'd rather go slow and lose only money that I own.
I'd say that is very wise.
You don’t own money. Subconscious the reason you trade
@@claytrader Hey Clay big fan here. Had a question. So I inputted my information in TD Ameritade such as employment, Net Worth, etc.. and it converted my cash account to margin account. How can I revert back to a Cash account from a margin account with TD Ameritrade? Same as George I rather start slow with my own cash.
@@larrysheran I'd give TD Ameritrade a call.
instuctions not clear, i got MARGIN CALLED
Please don't use the green marker. It is very hard to see on the whiteboard
You're absolutely right. Yikes!
Hey clay, nice video! I recently got a margin account with Scottrade 2:1. They said the interest is 7%, is that about the standard rate? Also I believe the guy I talked to on the phone said that as long as the position is opened and closed in the same day there is no interest on that money borrowed. Does that sound right? Thanks, I will be looking into your website
y0u better let that green marker scare you into respect!
The margin rates are for overnight holds, so yes, that is accurate. 7% sounds pretty standard.
haha
Thank you 👍 That’s also my principle, always respect the market and respect every penny of your money
Cheers
good tool but there is risk of losing money and have debt
you are an honest man and i respect that
using trading simulator batter at the beging
yes, you need to be careful for sure
Love the self-correction analogies as you teach the content. Very genuine and extremely helpful videos.
Glad you enjoyed.
"Im a Trader now" LOL LOL
Love your work man Thanks for all the vids!
Cheers
I have a margin account and use it as if it’s a cash account. It is nice to see my margin be in the 10s of thousands of dollars. But like the guy said…. RESPECT IT 😎
Cheers to that!
You explain things in your videos as if your viewer was a 6 year old....
THANK YOU! I need things explained that way. You are the BEST Stock teacher, i'm SO HAPPY I found your page.
I'm about as smart as a 6 year old, so yeah, that's how I need to explain it so I understand lol
@@claytrader haha, Well same... and thank you for that!
This was awesome teaching; thank you Clay.
And thank you for watching.
very helpful for newbies, thanks!
Glad it was helpful!
Very, very well explained concepts! Crystal clear Clay! Thanks for sharing! cheers
Thanks for watching!
You turned around to write on the board, I saw the back of your shirt and immediately started laughing to myself. Thank you.
:-) Good!
wow very good explanation! I finally understand...thanks
Glad it could help!
Definitely cleared that up for me, thanks for the warning too!
You're welcome.
Excellent explanation of margins. No beating around just straight out forward.
Thanks for the feedback
“Nope - don’t wanna use pink” 😂💕 Love these videos ! It makes sense!!!
Cheers!
Great explanation, simplified
Happy to help!
this exactly what i was looking for
Great!
Your the best teacher
Happy to help!
11 golden minutes in my trading journey. Thank you for making this video! And noted, I will impress the ladies by using this fancy lingo :-D
Cheers
great vedio, thanks for that
You're welcome
Great info clay! like your style, no B.S. just the beginning for me and I really like all of the clarification that you provide within terminology. you are really helping my understanding of multiple scenario and I am a big fan.
Thank you for the feedback. Glad you enjoy my style. When you are ready for all the knitty-gritty details of trading, head here claytrader.com/courses/
wow, best video i have watched in a while. Thank you
Glad you enjoyed it!
timeless video thanks for the good explanation..
Glad it was helpful!
The fire analogy was hilarious, the seed one was great tho xD
Thanks
Great video Clay. I'm brand new to all of this. I have watched all of your Trade 101 videos. I want to learn and start the right way.
First step is surrounding yourself with veteran traders, which you can do here claytrader.com/innercircle/
Another plus of a margin account is instant settlement of ur funds and u dont get charged interest on that if ur using ur own cash that u put in
True
Clay you are the best when it comes to explaning compare to other (youtubers). keep up the good work! thank you so much
Thanks, will do!
Im in crypto for well 1.5 year now. Begining was buying and holding then. Mining and masternoding. Now im on trading cryptos. Not a long time, Im a beginer, but already making some gains. So the next level is margin trading and Ill find the real good explanation at this video of what is a margin trading. And thanks for that good advise. After watching this, ill try that but only with 3 to 5 percent of my totaal gains in stead of 50 to 60 percent. Thanks and subbscribed!!!
Welcome to the channel!
Great Explanation!
Thanks!
Why haven't I subscribed yet!! After all the information I'm getting from you I should definitely subscribe.
I agree!
Thanks for the information.
Any time!
Time to go balls deep on margin! The stock market looks ready to bounce this summer.
I remember you! The degenerate gambler!
@@claytrader i was... I hope I am not anymore . Your memory is godly... whoa. I even have a slightly different name... my fat black face must be a big giveaway.
@@Venture_Warrior glad you've changed your ways!
@@claytrader that sir is some text book 📖 sarcasm
@@Venture_Warrior not true... if you have changed your ways, that's great!
It’s very easy to get carried away fast. I didn’t feel the pain with me charging credit card back in the days and got caught with my pants down when slammed with a huge statement!! I learned my lesson and moved to Debit card. But once again, found myself in a very similar situation with margin account! Yikes!! Be careful out there 🥺🥺
Well said.
Good teacher 👍
Thank you! 😃
Love the way you explain!
Thanks for the feedback Saman.
So in a margin account, say you put $5,000 in. But you only invest the $5,000 not the $5000 borrowed, would you be charged marginal interest ?
No.
Hi! Wonderful teaching! Can you do a specific video on how traders technically loose money?
Here ya go: claytrader.com/videos/how-a-stock-can-lose-you-money/
Thanks Clay!
You're welcome!
thanks man....nice lecture
Glad you liked it
thank you for lesson.
Thanks for watching
Hey Clay, good video...subbed.
Got some questions for you, or perhaps you could do a video.
1. When you have a margin account, when are you actually using margin?
For example, say a trader has $100k in a margin account that is their cash.
Are you trading on margin when you have exhausted your $100k capital on stock, or is each trade on margin? EG I buy $100k of Microsoft. I have no cash to buy more, so additional buys are on margin? Or would the first $100k trade in Microsoft be on margin? I find this confusing as some people say you don't need to use your margin and it can be there when you need it, but I don't see any clear explanation on how to put this into practise.
2. Related to 1 above, when you set a prudent Margin Cushion, what percentage would you suggest and is it based on capital? EG I have $100k of 'my' cash in Margin act, and I set my Margin Cushion at 25%. Does that mean I never borrow more than $25k (so $125k total), or does it mean I never borrow more than $75k (so $175k total) and $25k is the emergency reserve cushion?
3. On Interactive Brokers, you can transfer stock positions between Cash and Margin account. If I do this from Cash acct to Margin acct, is transferred stock subject to margin rules if it was bought with cash on the cash account?
Thanks for driving it home that margin is serious business...I find the broker information is not clear and so your videos are very appreciated.
Good questions... I'll try and see if I can get a video out.
@@claytrader Excellent! Looking forward to it.
Great video cleared alot up for me
Happy to hear it could help.
dam it! I wanted to learn but my adhd kicked in had me thinking about other things. smh .will have re watch again and again.
Whoops!
I use E*TRADE. I only want to use my own money but I can’t wait for money to clear from multiple trades daily. Is a margin account the answer ? Or will I be paying fees to E*TRADE to cover me until my money clears ?
Only pay margin if you are holding overnight.
Hai Sir I am from India. i am blessed to watch Your Classes and easy to understandable
Thank you for the feedback. Glad they are helpful!
"If you're running around like a moron" hahaha literally had me laughing out loud!
haha, it's true though!
yeah, that's the truth!
You are a good teacher.
Thanks!
Excellent video. Your descriptions are clear and concise!
Glad you enjoyed and found it helpful.
so can you open a margin account and use it as a cash account just to be able to also short sell?
Correct.
oh wow, that was fast ..thank you
You're welcome.
@@claytrader beauty!
@@ryannewton5423 cheers
Thank You!! Always wondered what that "margin" thing was on my Schwab account - Nice to know I have that "leverage" :-)
Happy to help!
Awesome man
Thanks!
That was an outstanding explanation.
Thanks
Wow this was very well explained!!! Thank you for making this easy to understand! I also enjoyed your gasoline metaphor. Made sense to me lol
Glad it could help!
Great work here!
Thanks.
The money in margin account is separate from the cash account, isn't it? . And to get a loan from the broker I've got to have some money in my margin account or no loan, right?
Correct
Clear and honest presentation. Thanks.
Thanks for watching.
Ok thanks time to go deep into AMC and GameStop. To the Mooooooooooooon
oh boy....
great info. Thanks
You're welcome Edvard. Thanks for feedback.
Very helpful 👍👍👍👍👍
Glad to hear that
thanks for the info
No problem!
When do you have to pay off the margin debts?
Depends on the situation.
Watched hundreds of investing videos, spent hours and hours trying to become an expert so I can learn and help create a better future for my family. Go to open a margin account and I can't cause my credit is shit. Bull. Shit.
Sounds like if you fix up your credit, they'll let you?
Wel explained, especially the interest part ..... Thanks again.
Glad you liked it!
thanks so much , you explain so clear , good job !!!
Thanks. Glad it could help.
Watched a bunch of your videos today. Thanks they are very helpful for me as a beginner.
Thank you for watching!
Simply explained. Well done bruv.
Thanks for watching.
I really believe I will be good at this if I stick with it and the videos are definitely helpful. Today is the day i decided to really dive in and start learning to prepare myself for when I choose to invest. I invite all insight that is offered.
Be careful.. this stuff is addicting ;-)
Thank you for the video!
You're welcome.
Smart ! Thanks for keeping it 💯
You're welcome.
You should explain more on the benefit using margin acc, i.e capability to short stock and longer settle time.
I have that in other videos.
please do a video on how funds are settled in a margin account, do you have to wait 3 days like a cash account to trade it again? how it affects the day trader making multiple trades per day. thanks in advance i really like your vids
Thanks for the idea. I'll see what I can do.
Great explanation . Looking to upgrade my account still on the fence though
Glad I could help
Thanks so much once again beautifully explained♡♡♡
Thanks for watching!
Thank you
You're welcome
Great explanation. Thank you
Glad it was helpful!
great video!
I'd like to ask couple of questions
Let's say same example as yours.
1) if I buy 5000$ worth of stocks, is there any interest?
2)If I buy 10000$ worth of stocks, do I have to transfer money to broker account to pay interest?
do the brokers charge interest usually daily/monthly basis?
You just need to read the "margin requirements/policies" that every broker outlines. Each can vary in ways, so it's best to just look at them case-by-case.
Thanks for a great video, nice and clear😁
Glad it was helpful!
Please do a video on how to sell stocks so that you know you are making money after what you paid for them.
Here you go Angie claytrader.com/videos/how-to-sell-a-stock/
Did not understand it
1- I have 5000 on my margin account
2 - I can loan 5000 (Now I have 10 000)
The question is: If I lose these 10 000, that means that I will have to pay 5000 to broker? Then in what way I need this ? Even if I double the money, I will have to pay broker 10 000, and 10 000 will be mine. This is the same if I would double my 5000 without any loans and fears.
Why should I create these problems to myself?
Yes, margin can be very dangerous if you are wreckless with it.
You will only pay the interest to broker plus the money you owe. You double the money, your revenue will be 20000. then you return the 5000 loan back to broker plus the interest. Simple as Water!!
would flipping blue chip stocks over and over again on margin a smart strategy?
That's a bit oversimplified
in the end it's still a gamble. more digit means more lose, but if you hit the jackpot you earn big.
still earning big have no shortcuts, so earning slowly is still the best way. it's like micro-transactions whatever.
Crossing the street is a gamble.
What's the interest rate of the loan? If I put 100% of my account into one stock (I really wouldn't do this), and the company goes out of business and the stock falls to ZERO. Am I now liable to pay back 100% of my loan to the brokerage? Why would they do that? Seems too risky for them. Why would I want to use a loan? Thats not investing. that's speculating. If I am going to do that.. why not buy a house? at least I have solid collateral with a house.
That depends on the broker.
So, if I get it, in laymans terms: You put X amount into this "margin" account, the broker loans you a multiple (the "leverage") of that (the total being called "buying power"). There's an interest rate on the loan ("margin rate"). Ideally you'd be able to make enough gains to make a profit and offset the interest rates. However if you make a loss greater than your original amount, you can end up owing money (as the loan eventually has to be repaid to the original amount?).
Right
There are tons of UA-cam videos out there about "what a Margin account is". I was looking for someone to please explain "How to use" or "execute" a Margin trade.. Margin maintenance requirements, minimum balance requirements to use Margin for both Non-Day trading and Day Trading etc.. Can you please make a video detailing how to "execute a margin trade"? What is the maintenance requirement and how does it work? Also, can investors choose the amount or percentage of margin they want to use? Or does it always have to be a 2:1 ratio? Can I invest $10,000 of my own and only use $2,000 margin instead of $5,000???... Please make a video discussing these things. Thank you so much.
I'll see what I can do.
Hi Clay. If you can make that video about executing a margin trade that would be great! Thank you so much.. Can you also make a video explaining Short Sell and Buy to Cover?.. If price rises past what you Sold it Short for by 5 or 10 cents before it drops back down again, is that acceptable or is the investor in trouble even for a 5 or 10 cent fluctuation? How much price fluctuation is allowed using the Short Sell & Buy to Cover strategy?
@@MrChad-rs4ki good ideas... I'll see what I can do.
You're amazing
Thanks
Do you have a video showing how you physically short a stock online in your account after you open a margin account??
Yes, in many of these live trade videos, I short stock claytrader.com/blogs/live-trade/
I'm sure you get this a lot, but how much time do you spend responding to comments? I've never seen this level of dedication to responding to comments. Hopefully more people take a hint from you.
Oh, and good video I "knew" (assumed correctly) most of this stuff already, but it's good to get reassured and I learned a few new things like what "leverage" is.
It's just part of my morning routine. Been doing it for years, so I've grown use to it :-)
And if i understood the only benefit of a margin account is having the ability to go short and invest more than what you have to your name. Could benefit if you had good information that said a stock was about to go through the roof, but very risky.
Correct. Margin must be treated with respect.
Can you please tell me the associated formulas with margin accounts, and margin transactions/purchase, such as rate of return?
Thank you,
Maybe I can do a video someday. Thanks for suggestion.
I'm trying to learn as much as I can before i start trading and your videos are helping me so much. And it would be much helpful if you inclide some examples and more numbers in explainin. like, for example in this video, examples of how much is the average of margin interests out there. I hope i make sense. english is not my 1st language. Thanks for the videos.
I offer training courses here claytrader.com/courses/