How do I calculate interest on margin borrowing for short-term stock trades?
Robert W asked:
I borrowed $30,000 today to make a quick stock trade, I held the money for no more than 40 minutes, the margin rate for my broker is 10% APY, how do I calculate how much I will have to pay for my borrowing for this one trade?
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Sphere: Related ContentI borrowed $30,000 today to make a quick stock trade, I held the money for no more than 40 minutes, the margin rate for my broker is 10% APY, how do I calculate how much I will have to pay for my borrowing for this one trade?
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THE BEST answer you’ll get: calling your broker and get THE EXACT formula.
If the broker doesn’t have the exact way to calculate, ask for the corporate headquarters’ phone number AND e-mail address.
There’s nothing like going straight to the source.
You might get 4 answers here AND they could all be based on the way the folks’ giving the answer says that’s how THEIR broker does it.
In trading, like the real world, nothing is exactly “cut and dry”.
Thanks for asking! I enjoyed helping you find the answer.
VTY,
Ron Berue
Yes, that is my real last name!