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Fees
What is the interest on margin trading and short selling?
What is the interest on margin trading and short selling?

1) Margin interest is only charged for leveraged positions held overnight.

2) For a long position, the daily interest= Borrowed Cash * Margin Rate/360.

Margin Loan (USD)Annual Margin Rate
0-25,000.006.99%
25,000.01-100,000.006.49%
100,000.01-250,000.005.99%
250,000.01-500,000.005.49%
500,000.01-1,000,000.004.99%
1,000,000.01-3,000,000.004.49%
>3,000,000.003.99%

Let us assume you leveraged $30,000, held the position for two days, and then sold it. The margin interest charged will be [25,000 * 6.99% + (30000 - 25,000) * 6.49%] * 2/360 = $11.51. You will be charged $11.51 at the beginning of the next month.


Fees for short sale

For a short position, you need to borrow shares. The cost associated with a short sale is the fee for borrowing said stock. This fee changes every day for every available stock and is charged on a daily basis.

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