I understand the basic principles of these concepts, but I've had a hard time verifying exactly how these all work together in actual practice.
Scenario: let's say I have $200k in a margin account where I can trade up to 2x the value of securities held. If I buy $100k of a stock in the morning and sell it in the afternoon, I now have to wait two business days for those funds to settle and be available to trade with again.
My question is this: Can I effectively trade $100k every day without running afoul of settlement/margin rules, or only $50k per day? It would seem to me that it's $100k, yet I get warnings about funds availability and the risk of margin calls from my broker when attempting this.
Do I need to continually hold $200k in securities in order to have $400k of margin to invest?
Thank you for any insight you might be able to offer.
Submitted March 10, 2018 at 09:57AM by memories_of_butter http://ift.tt/2txxjCH
