NEWBIES BOARD

[Trod27]

Garyst can you explain this a little more.

"I believe it is just 1000.00 to open a margin account but to trade on margin you need 2000.00."
Having a margin account does not help with pennies but it does help by not having to wait for funds to settle? Is this only with Etrade?

When I ask Scott they claim you still have to wait the three days.

7:30:36 PM : Jon H.: Most penny stock is non marginable though, so you would not be able to use margin for them.


7:32:30 PM : todd: I think I understand that. correct me if I am wrong but I have a penny account then I wont have to wait for the three day settlement?


7:33:26 PM : Jon H.: If you are purchasing stock with unsettled funds you need to wait until settlement in order to sell them again.


7:35:23 PM : todd: If I have a margin account then I wont have unsettled funds according to my friend. he told me with Etrade they allow then so many trades in a day

7:37:01 PM : Jon H.: With a margin account, you are able to borrow funds in order to purchase stock. You can avoid purchasing with unsettled funds because you can use margin.


7:37:21 PM : Jon H.: Unfortunately, you have to use your own money to buy penny stocks at Scottrade, you cannot use borrowed funds