On what timeframe should margin be used?

Discussion in 'Trading' started by IronFist, Mar 22, 2006.

  1. < noob >

    I was thinking, say your margin interest rate is 10%. So if you held a position open using margin for an entire year, and you made 10%, you would just break even then. So obviously I'm assuming margin is used for shorter-term trades, right?

    Also, if you're a day trader using the 4:1 margin, but all your positions are closed by the end of the day, do you have to pay interest on the margin you used for less than a day?


    < /noob >
  2. right and no.