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Jonathan
Joined: 08 Nov 2007
Posts: 2155
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 Posted: Tue Dec 11, 2007 5:48 am Post subject: How does day trading purchasing power work.? |
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| If you have 25,000 in your account it says that you may leverage it by 4:1 so you really have 100,000 daytrading purchasing power. Do you get charged interest on the 75,000 that is not in your account? |
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Everett
Joined: 08 Nov 2007
Posts: 2104
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| Posted: Tue Dec 11, 2007 5:48 am Post subject: How does day trading purchasing power work.? |
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| no but if you use it you must create the difference in what the market is worth and what you invested other words if the market goes down say 15K and your stocks ar now only worth 85k you must create 15k high risk business too nerve racking for me. |
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Gregg Moore
Joined: 08 Nov 2007
Posts: 2207
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| Posted: Tue Dec 11, 2007 5:48 am Post subject: How does day trading purchasing power work.? |
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I dont really know much about day trading, but isnt there something about margin calls? Could that $25K be considered the margin for that $100K?
If they do a margin call, you must create all the money now.
Also, you shouldnt risk with money you dont have and cant pay for to lose. |
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