Using T-Bills for margin

Discussion in 'Retail Brokers' started by svrart, Mar 7, 2008.

  1. svrart



    How does the process of using t-bills for margin work? My understanding is as follows:

    I ask the broker to buy t- bills for some multiples of 10000 $. He charges me a commission and buys it. How long is this t-bill valid for. Is it 3 months? At the end of the period does it become cash automatically? Would there be another commission for this? Is there a way of automatically rolling over the t-bill indefinitely?

  2. What is your purpose for wanting to do this? What are you trying to get from this?
  3. svrart


    Instead of letting my cash sit idly, it can earn interest in the form of t-bills and still function as margin.

  4. no there is no commish. its taken out of the rate but its very little. you can do 30 are 90 day bills. many roll automatically. i've used before with brokers when i'm over the 100k cash for sipc ins. you can margin 90-95% of the tbill to trade against but if i recall anything you hold overnight against it is charged margin interest so leave some money aside if you hold overnights