Hi, I've been studying bull put spreads and I'm curious to find out how much interest I'll be charged for using margin. If I sell a bull put spread and the margin impact is 500, can you please tell me how much interest I will be charged? I found this website but I would like to double check with you guys. https://www.interactivebrokers.com/en/index.php?f=46376 According to the website, I will be charged $8 for one spread. Thanks
No interest is charged. You are putting up cash collateral in case the spread goes bad. You are not borrowing.
As per my knowledge, you are not charged with any interest for using the margin. I think you must read on some other website or correct me if I’m wrong.