Noob question regarding Margin Interest on Overnight/Swing Trades

[misterchai 8]

I assume that if you take an overnight position you are charged interest on the margin, the amount being broker dependent. Is there a DAS setting to switch to using cash only on longs, and not margin as buying power?

 

Thanks 

[Kasper 13]

No, you would have to set-up a cash account with your broker.

Kasper

[misterchai 8]

And then link that to your platform, got it thanks Kasper

[[email protected] 2]

Sorry for redundant question. I still don't get it. Let's say I have a margin account. When I keep my long position (within my equity, not taking margin) overnight, do I still have to pay interest ?

If yes, that means swing trading is very expensive.

When I have open order, what happens if I switch my computer off.

[Bryan W 50]

On 7/13/2020 at 1:34 PM, [email protected] said:

Sorry for redundant question. I still don't get it. Let's say I have a margin account. When I keep my long position (within my equity, not taking margin) overnight, do I still have to pay interest ?

If yes, that means swing trading is very expensive.

When I have open order, what happens if I switch my computer off.

I'm not sure about the interest if you aren't using margin, I wouldn't think there would be any, but your brokerage should be clear about the rate somewhere on their site. 

Unless you cancel your order, or it hits its expiry, it will remain open even with your computer or trading platform shut down. I'll attach an example of available times in force on DAS trader. For example, if you select DAY as the expiry, unless that order gets filled, it will cancel at 4pm Eastern. If you select GTC, the order will remain open until it's filled or you manually cancel it. 

[bibekpillai 0]

Hello,

I am very new to day trading and have been trying to study all the lingo related to the broker accounts, rules and strategies related to day trading. I did have one particular question and that is related to interest rates on margin accounts. Let me ask my question with the help of an example, let say i have $2,500 in my account with a leverage of 6:1. This means i have a buying power of $15,000. Now $15,000 - $2,500 = $12,500, is the amount of money i owe to the broker for the buying power. My question is, does the interest rate kick in for $12,500 amount? If not then how does it work?