Marginal
Trading > This page
Your Debit Balance and Margin Interest Rates
Except for the addition of daily interest
charges, posted monthly, your debit balance does not change from the amount
loaned to you when you originally bought the stock. Specifically the rise
or fall of your current market value will not affect your debit balance.
However, it will affect your account equity.
To reduce or pay off your debit balance you
have to bring funds into your account in either or both of two ways:
- Deposit funds directly into your account
- Sell securities in your account. The proceeds
will first be used to pay off your debit balance and then you will receive
whatever is left over.
Recommended further reading:
Buying
Power and Excess Margin
The advantages and disadvantages
of a Margin Account
Margin Account Approval
Margin Requirements
Margin account - diversified
portfolio
|
