Margin Account vs. Cash Account: Which is better for traders?

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ELI5 margin trading vs interest rates

Interest rates for loans are getting to an all time low. But when you borrow from a stock broker like Schwab, Fidelity, TDA etc. you could pay upto 10% interest. Why aren't stock brokers more dynamic with their margin borrowing rates to become more inline with market place interest rates? Why isn't the margin borrowing space more competitive?
submitted by eopif to investing [link] [comments]

Margin trading vs leveraged ETF

Which would be a better choice for long term buy and hold:
  1. Margin trading ETF (IVV) at 2x leverage at 3.8% interest rate (Interactive Brokers)
  2. Buying the equivalent 2x leveraged ETF (SSO)
The 10-year trailing return of IVV is 14.62%, so option 1 would have yielded me 14.62*2-3.8 = 25.44%, while the 10-year trailing return of SSO is 26.17%, so it seems like the leveraged ETF is a better option (no risk of margin call too).
References: https://finance.yahoo.com/quote/IVV/performance/ https://finance.yahoo.com/quote/SSO/performance?p=SSO
submitted by Olivia512 to investing [link] [comments]

DEX margin trading vs BitMex

DEX margin trading vs BitMex submitted by oldshorts to CryptoMarkets [link] [comments]

Most secured exchanges for DASH and IOTA margin trading vs USD or EUR

I use to trade on Bitfinex, but lately I read bad stories where they ask you to prove the origin of the coins which sounds like a pain in the ass which I don't want to go through ever so I'm looking for another exchange to trade on margin.
submitted by ureindanger to CryptoMarkets [link] [comments]

Which site do you use to margin trade vs USD, I live in the United States and I currently use Kraken. But, it's absolutely awful to use. I need another place to go.

Kraken is terrible, but it's the only site in which I can actually trade vs fiat instead of vs BTC or some other cryptocurrency. I'm also fine with trading vs USDT if that's available.
submitted by piratehcky6 to CryptoCurrencyTrading [link] [comments]

Margin trade vs exchange?

I see that you only gain 1/2 of the difference on short or long. For 1 btc going long on margin (0.5*($670-$640)) = $15.
If you do an exchange you will get close to $30 profit with just some exchange fees.
So exchange is more profitable?
submitted by Steinbock007 to BitcoinMarkets [link] [comments]

Cash/Margin Account vs. RRSP Trading

Hi - I don't want to use my TFSA to make day/swing trading income due to risks/CRA. But is it better to trade inside my RRSP or Cash account? RRSP - my gains will be taxed like income come RRIF which I don't think is fair- CRA should only tax contributions but that's life...I can make $200-$3000 every week in capital gains. Thanks
submitted by donksky to PersonalFinanceCanada [link] [comments]

Futures vs margin

What's the difference between using margin trading vs futures trading. Is it you can get more leverage with futures trading? Both offer 5x on btc
submitted by lost_civilizations to binance [link] [comments]

PrimeXBT vs TradeConnect Margin Trading Review 2020

PrimeXBT vs TradeConnect Margin Trading Review 2020 submitted by Ranzware to BitNewsLive [link] [comments]

PrimeXBT vs TradeConnect Margin Trading Review 2020

submitted by Ranzware to BitNewsLive [link] [comments]

PrimeXBT vs TradeConnect Margin Trading Review 2020

submitted by Ranzware to BitNewsLive [link] [comments]

Cash vs Margin Accounts and Day Trade Limits of Each.

Cash vs Margin Accounts and Day Trade Limits of Each. submitted by MoarGPM to Webull [link] [comments]

trading on margin vs futures, derivatives, etc

To followup on previous post:
https://www.reddit.com/Bitcoin/comments/g09cuk/good_exchange_to_short_btc_for_us_citizens/?utm_source=share&utm_medium=web2x
I looked at Phemex, Bybit, or Deribit but I don't know anything about trading derivatives. And I don't want to trade bitcoin.
My goal is buy more tezos with borrowed money. Kraken is too expensive. Binance forbids US residents and they do KYC even if they say they don't for small amount. Kucoin does not look reliable but at least 6 times cheaper in margin interest compared to Kraken. Kraken charges margin interest every 4 hours. Kucoin charges the same amount in 1 day. I don't want to use coinbase because they report to IRS and is a tax nightmare for me.
Questions:
  1. what exchanges out there let you trade altcoins with margin for someone living in US besides kraken, coinbase?
  2. what do you feel about trading futures, derivatives? I know nothing about them.
submitted by diamente1 to Bitcoin [link] [comments]

Margin vs cash trading question

If my account requires margin and I have cash in my account... then am I still paying interest?
submitted by 1111rob to OptionsOnly [link] [comments]

Defi vs. Margin Trading: How to Borrow against your Ethereum

I have tried out Maker and it works well to borrow USD (DAI) against my Ethereum in order to buy more Etherum. Is there any exchanges that provide the ability to borrow USD against your Eth? On Binance margin trading requires you to deposit ETH and borrow ETH and repay ETH so there is no upside on ETH investing.
submitted by luke_shim to ethtrader [link] [comments]

Bitcoin margin trading Platforms: Bitmex vs Binance vs Deribit vs Bybit

Bitcoin margin trading Platforms: Bitmex vs Binance vs Deribit vs Bybit submitted by itsblockchain to CryptoMarkets [link] [comments]

Does trading commission vs spread eat at your free margin a lot faster for some reason?

submitted by rawrtherapy to Forex [link] [comments]

How is margin trading pretty safe if the margin trading side of things can buy more value than they're borrowing?

This is my first go at understanding margin trading vs lending. I'm trying to understand all the risks associated with it. I understand if the exchange goes down things can be jacked up, but for the purpose of this discussion lets ignore that scenario. I've searched on YouTube and found some videos, but haven't found anything yet that cleared it up for me. I see a LOT of people say that how Poloniex does it (with the collateral liquidation) makes it almost risk-free unless there's something massive that happens with the price in a very short period.
Poloniex's web site gives the following example:
Current Margin: The percentage of your Total Borrowed Value that your Net Value currently is (in other words, Net Value over Total Borrowed Value). Current Margin is a critical value, because if it dips below your Maintenance Margin, your account will undergo a forced liquidation. For example, suppose you have 1.5 BTC in your margin account, and your Maintenance Margin is 20%. Borrowing 3 BTC, you open a long position in the XMR market. Now, in order to avoid a forced liquidation, the Net Value of your margin account must remain above 20% of the 3 BTC you just borrowed, or 0.6 BTC. If the price of XMR starts declining, the amount of BTC you can get by selling the XMR you just purchased diminishes, and you start to incur a loss. This is reflected in your P/L and Net Value. If the amount of this loss, together with the lending fees you owe, reaches 0.9 BTC, the net value of your margin account will be 0.6 BTC (1.5 BTC minus 0.9 BTC in unrealized losses) and a forced liquidation will trigger.
Is this saying that the borrower must maintain a value of at least 3.6 BTC in their margin account? If so, it makes sense why this seems risk-free aside from an issue with the exchange going offline or very steep fluctuation in price...
submitted by Webnet668 to CryptoMarkets [link] [comments]

Robinhood vs Webull vs TD Ameritrade (The REAL Trading & Margin Fees)

Robinhood vs Webull vs TD Ameritrade (The REAL Trading & Margin Fees) submitted by mralexwinkler to SmallCapStocks [link] [comments]

Cash vs Margin account for day trading on IB?

Newbie here, been "day trading" (sort of) on Robinhood for the past few weeks. Ran into the issue of being marked as PDT and blocked from selling certain stocks I had recently purchased.
Considering:
-I am starting with a small account balance of $1.5-2k
-I am trying to save as much in fees as possible to keep my daily percentage gains high (reason why I decided on IB as my new broker)
-I would like to have account deposits/withdrawals go thru as quickly as possible (preferably the same day I deposit)
-(Not as important as the above requirements) Would like to have the option of trading options (pun intended)
It would be better to go with a cash account right? Or are there benefits to day trading with a small balance margin account that I'm not seeing? Thanks in advance for the advice!
submitted by makeshiftbakedkids to Daytrading [link] [comments]

Taking out a loan vs margin trading

Hello folks, I discovered Nexo and while I think there’s a great need for long term investors / hodlers to access liquidity via fiat loans, for pure trading purposes is there any reason to take out a USDT loan vs margin trading on exchanges such as Bitmex? For lower interest rate maybe?
submitted by thewalkingrobot to Nexo [link] [comments]

difference between margin trading BTC vs leveraged Forex

wondering why people prefer to to trade btc via bitmex vs forex, sorry if this sounds like a stupid question.
submitted by paisleydarts to BitcoinMarkets [link] [comments]

Basics Of Trading Options With Margin [Episode 97] - YouTube What is Margin Trading Understanding Margin Trading Accounts - Initial & Intraday Margin Margin Trading 101: How It Works - YouTube Margin Account vs Cash Account: Which is right for you ...

A margin account is a brokerage account in which the broker lends the customer cash to purchase assets. When trading on margin, gains and losses are magnified. more. Margin Call Definition. Margin Trading vs Spot Trading? Well, imagine you don’t have enough for the trade you’re looking towards leveraging. With margin trading, the trading platform allows you to open a position that is larger than the balance of your account. Essentially, this allows people, or traders to access an amount of funds to increase their order, which ... Spot trading is your normal buying/selling. You spend one currency to get another. Margin trading is not your normal buying/selling. Essentially, a margin trade in one product is a bet on the price of that product, using borrowed money to attempt to amplify your profits. Margin Trading vs Spot Trading? Well, imagine you don’t have enough for the trade you’re looking towards leveraging. With margin trading, the trading platform allows you to open a position that is larger than the balance of your account. Essentially, this allows people, or traders to access an amount of funds to increase their order, which ... Trading on margin. Buying securities on margin allows you to acquire more shares than you could on a cash-only basis. If the stock price goes up, your earnings are potentially amplified because you hold more shares. Conversely, if the stock moves against you, you could potentially lose more than your initial investment.

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Basics Of Trading Options With Margin [Episode 97] - YouTube

How To Avoid Pattern Day Trading Rule Cash Account VS. Margin Account - Duration: 23:37. The Boiler Room 47,859 views. 23:37. Taking losses, ultimately winning · Sean Hendelman, ... Do you have a margin account or a cash account? Tim Bohen is covering the pros and cons of each kind to help you decide which is best for you. 🔴 Subscribe fo... Click here to Subscribe - https://www.youtube.com/OptionAlpha?sub_confirmation=1 Are you familiar with stock trading and the stock market but want to learn h... What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... Margin trading in the forex market is the process of making a good faith deposit with a broker in order to open and maintain positions in one or more currencies. Margin is not a cost or a fee, but ...

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