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Re: jrod post# 39883

Tuesday, 11/22/2005 12:15:13 AM

Tuesday, November 22, 2005 12:15:13 AM

Post# of 286276
Jrod...it is my understanding that it still takes the 3 days to receive settled funds from a trade , but those funds are
creditted to a MARGIN account for use by the client , and any use of those funds before actual settlement is charged a nominal interest fee . Some Brokerages waive the interest fee
when portfolio stock balances are above a standard amount .
This applies to ALL stocks where a client is only using / borrowing the EXACT amount to be received from a SELL after the 3 day settlement rule .

It does allow for immediate use of funds for other BUY trades once any SELL trade has been exercised .

Of course , marginable stocks allow a client to borrow up to twice to three times the value of the marginable stock depending on the marginable ratio for a particular , but that can be a killer if the marginable stock goes down and a margin call is forced .

To bite the worm of incite is to bite the HOOK of the antagonist . They win .