UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: GenericMike Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 83  
Subject: Basic Question about Trading on Margin Date: 11/26/2008 10:56 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
So I'm trying to understand the fees associated with trading on margin. Here's the example I'm looking at:

Etrade charges 7% as margin interest. Their website says "The interest compounds daily and is charged monthly, and starts accumulating on the third day after the margin trade." Let's say I borrow $2,000 to trade on margin, does that mean after the third day they're going to start charging me $140 A DAY until I close the position? That's insane! How does anyone make money trading on margin if that's the case?
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement