Question about margin (borrowing overnight)

Hi,

Question 1
If the interest rate of borrowing stocks is 6%. and you borrow overnight from Monday to Tuesday, what is the interest rate you pay?

A) Principle * (0.06 / 365)
B) Principle * (0.06 / # business days)


Question 2
If the interest rate of borrowing stocks is 6%. and you borrow overnight from Friday to Monday, what is the interest rate you pay?

A) Principle * (0.06 / 365) * 3
B) Principle * (0.06 / 365) * 1

 

Question 1

for USD answer is (C) Principle * (0.06 / 360) * 1


Question 2

for USD answer is (C) Principle * (0.06 / 360) * 3


Note that the margin interest calculation works by settlement date not the trade date.

 

CALL
YOUR
BROKER!

 

Thank you for your response.