Hi there. I have some questions... wondering if anyone here can help 1. On a Margin account, how is one able to buy/sell repeatedly within the Daytime Buying Power in regards to settlement dates? How does the broker continuously provide more money? 2. If I have an account total of $100k of cash: I buy $200k of a security before a day's close (ie. Monday) and hold it overnight, then sell the $200k (assuming no fluctuations in value) the following day (Tuesday)... what is my buying power for Tuesday? Thanks!
#1. You can, I would not worry about the process. Not your problem. #2. $0. You get back you BP Wednesday, BP is only set overnight. You can never have more than you had at the start of day,
Thank you Robert. It was informative. What if I have an account total of $100k of cash BP set to 4:1 intraday and 2:1 overnight: I buy $50k of a security before a day's close (ie. Monday) and hold it overnight, then sell the $50k (assuming no fluctuations in value) the following day (Tuesday)... what is my buying power for Tuesday?
It can never exceed what you had Tuesday morning. If you had DT BP of $200K that morning, and liquidate, you still have $200K until the next day, then $400K wednesday.
Got it thanks.BP is decided over night.No mater if position is squared off during a day. The funds released during day will only add to BP next day.