I have ,000 in equity at a discount stock brokerage firm. I make my own decisions and trade frequently. It will say I have ,800 in buying power. Just starting today they added something called day trading buying power and it is close to ,000. If I was to use ,000 of this power would it mean I would have to sell what I bought within the day or could I still hold the position overnight? I also can’t see why I am granted ,000 in power for the first time. Anyone know what to tell me about my 2 questions?
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Tags: day trading, decisions, discount stock, stock brokerage firm
If you have a margin account, your buying power is a multiple of your actual cash value. Buying power is typically expressed intraday (same day) and interday (overnight). The larger of the two is typically intraday. If you buy and sell multiple times in a given day, you typically have no limit on the number of times you can buy and sell, with associated transaction costs. You are simply limited on the amount of buying power you can use at a given moment. Call your broker and be sure you understand your margin multiple.
Your crazy if you leverage like that or take advantage of margin offerings – especially in this market. You will not only loose all your money, but you will end up owing thousands on top of that.
Just invest your $36,000 wisely and it will compound into a lot more.
http://stocksbuyorsell.com
I think you better quit investing in stock market shares. Regardless of what discount or buying power provide by the stock brokerage firm. They will get all your saving eventually. Hong Kong is known as the International Capital of scams of stock market shares and real estate transactions. Hong Kong government is dealing with the Lehman Brothers mini bonds problem affecting many investors in Hong Kong, many banks are involved in hedge funds, accumulator or leverage or derivatives investment problems. I personally (My husband’s Chinese friends told me)know Hong Kong citizens have been losing ranging from HK $ 100k to HK 10 million dollars because th investments in stock market. You better learn the risky parts about buying stocks. Many Hong Kong investors have been in huge debt for their greed in buying power by applying Margins. Even Warren Buffet once admitted he had the problem of figure out the mathematical calculation about derivatives.
http://en.wikipedia.org/wiki/Stock_markets#Short_selling
It is not to late to quit buying and selling stock shares now, my friend.