So on E*Trades website it says that for margin less than $10,000 the interest rate is 9.75%.
I would like to know how much interest I would be charged if I bought a stock using $1,000 of margin, INTRADAY (So I would only hold onto the stock/borrowed money for 1 day or less).
It wouldn't just be a flat 9.75%($97.5) on the margin borrowed, correct?
I have read mixed things when trying to research this.
Is the 9.75% an ANNUAL rate?
So would it be: $97.5/365 day = $0.27 per day?
Is the 9.75% a MONTHLY rate?
So: $97.5/30 day = $3.25 per day?
Thank you in advance for any input!
-Pete
Posted Nov 07, 17 2:05 PMbyPS23
Received 1 Karma
Welp... Called E*Trade and found the answer. I'll share it here for anyone that's interested. If you hold the stock for 1 day or less (before the settlement date of the money used to trade (t+2)) Then you do not have to pay any interest at all. If you hold the stock beyond the settlement date +2 days, you are charged the 9.75% on an ANNUAL basis, so it would end up being $0.27 a day in interest. Cheers!
Thanks for that!!!!
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