Hello everyone. Newbie here on r/investing.
I have a margin account with TD Ameritrade. So far, I've only done long-term investing and haven't exceeded my available cash (i.e. on trades on margin). I plan to try out some day- and swing-trading strategies (I'm aware of the PDT ramifications of a margin account).
I have a couple of questions and the information I've found online has been conflicting:
1) Does buying a stock with unsettled funds constitute 'buying on margin'? Example: I deposit $50k into a margin account and buy $50k worth ABC on Day 1. I sell on Day 2 with no profit (these proceeds will settle on Day 4). On Day 3, I buy $50k worth of XYZ. Does the trade on XYZ count as being 'on margin' and will I be charged interest?
2) Are all short sales on margin because your borrowing the stock to sell?
Perhaps the reason why I've gotten conflicting info (primarily for question #1) is because there are broker-specific rules to this issue? BTW - I did send an email to my broker but I likely won't get a response for a day or two because it's the weekend. I thought perhaps someone here could assist.
Thanks.
Submitted December 14, 2019 at 05:13PM by rad1182 https://ift.tt/38EsoQR
