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Title: How long can I hold in margin trading ? Post by: fahad.khan on April 03, 2018, 09:30:32 AM I am familiar with a concept of 'time value of money'. In margin trading, If I take that extra amount which exchange offers, it doesn't specifies any time limit for return, which in my view is necessary. What if I hold for 6 months, am I not liable to anything ?
I cant understand this concept in margin trading. Can anyone please guide and help me understand ? Thanks. Title: Re: How long can I hold in margin trading ? Post by: Jaycee99 on April 03, 2018, 01:39:12 PM I am familiar with a concept of 'time value of money'. In margin trading, If I take that extra amount which exchange offers, it doesn't specifies any time limit for return, which in my view is necessary. What if I hold for 6 months, am I not liable to anything ? I cant understand this concept in margin trading. Can anyone please guide and help me understand ? Thanks. HA? please reply to my post what do you know about margin trading? what is your definition of margin trading? (note Iam asking nicely here you might get mad of the words I wrote and might misunderstood me) Because your just asking about trading not the word margin because "margin trading" is borrowing like getting money for trading to use it earn/for to gain income AND RETURN it back from the owner you got and accessing margin is using an margin that is an account. Just to me it short and helpfull I would suggest you to go toooo Source (http://https:www.investopedia.com/university/margin/) Be Positive this can really help you more I know I should write what I learn here but its much better reading the original. I just want to tell you its dangerously risky so if will share all it here instead of typing it here I will let you know that dont (Because I am a person that is not into getting in a big RISK) Search this on google which I read before and that it was the first results (link) it says this Quote "Margin trading is risky business, and therefore is governed by rules set by a number of entities – the Federal Reserve Board, self-regulatory organizations (SROs) such as the New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA), and brokerage firms. SOURCE (https://www.investopedia.com/university/margin/) Title: Re: How long can I hold in margin trading ? Post by: metenjean on April 04, 2018, 10:18:40 AM The simple answer is as long as your capital / equity can hold your position or as long as your investment price didn't go to zero. Margin trading refers to using margin and leverage in opening a position mostly common used in forex trading and CFD, basically you're buying an item / stocks / currency with a margin from a contract depends on the leverage, for example if you're using a 1:100 leverage with a $100k contract, then you only need $1k to buy a $100k worth of item. Its more like using down payment to hold your position, if you're having a $100k equity in your account then it won't be a problem since you won't be losing a dime unless you sell it or the item worth nothing. However if you're having less than $100k, for example $5k then you should calculate how much your equity can hold until a certain price.
Title: Re: How long can I hold in margin trading ? Post by: fahad.khan on April 06, 2018, 05:06:53 AM HA? please reply to my post what do you know about margin trading? what is your definition of margin trading? (note Iam asking nicely here you might get mad of the words I wrote and might misunderstood me) Because your just asking about trading not the word margin because "margin trading" is borrowing like getting money for trading to use it earn/for to gain income AND RETURN it back from the owner you got and accessing margin is using an margin that is an account. Just to me it short and helpfull I would suggest you to go toooo Source (http://https:www.investopedia.com/university/margin/) Be Positive this can really help you more I know I should write what I learn here but its much better reading the original. I just want to tell you its dangerously risky so if will share all it here instead of typing it here I will let you know that dont (Because I am a person that is not into getting in a big RISK) Search this on google which I read before and that it was the first results (link) it says this Quote "Margin trading is risky business, and therefore is governed by rules set by a number of entities – the Federal Reserve Board, self-regulatory organizations (SROs) such as the New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA), and brokerage firms. You seem a knowledgeable person to me, Let me put my real confusion in front of you.I trade at Bitfinex, I just started margin trading as my initial investment is reduced to 1/4 of initial total. I borrow money there at 1:3.33 and trade with it. Question # 1: There must be some interest rate or something like that which I have to pay extra on the borrowed amount but I never knew how much is it. and for how long I can hold that amount, not to incur further loss on paying that interest. Q # 2: For example I had $100 and I bought 3 LTC with it @ 116$/LTC with leveraged fund. I put sell order @ 120$/LTC and clicked "calculate max. sell". There I was able to sell 5.6 LTC whereas I possessed only 3 LTC. It got me confused. Furthermore, My sell order executed @ 120$ but it said my position was still open, and when I closed it, it actually executed @ 119$ rate and I got very little profit. I cant understand what happened there. Please help. Thanking you in anticipation. [/quote] |