Can someone explain how much margin T-Bills get with brokers?

D

David Donner

I am currently in the BIL etf with all my uninvested cash getting GREAT interest and able to intraday trade since BIL is marginable.

How do Treasury Bills brought thru a broker work with margin? The same as the BIL etf? More? Less?

(This will be my first time buying TBills thru a broker and still want to be able to daytrade and want to retain some high interest rates over the next year as I think rates will start to fall & BIL will be paying less and less going forward.)

Thank you for any info you can offer!
 
Robert Morse said:
We offer T-bills at 90% for Margin accounts and 95% in a futures account.
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Hi Robert forgive my ignorance but can you please explain? I don’t understand.

I doubt you’re offering T-bills at 90% of the bid or ask price (i.e., discounted 10%)!! If so, I’m all in :)

90% of what?
 
The question was about margin on T-Bills. If the value of the discounted bill is $100,000 then your excess for trading is $90,000. Then what every day-trading leverage you are approved for you multiply that by your leverage. If approved for 4x, your Day-Trading available margin in that case would be $360,000.

kmiklas said:
Hi Robert forgive my ignorance but can you please explain? I don’t understand.

I doubt you’re offering T-bills at 90% of the bid or ask price (i.e., discounted 10%)!! If so, I’m all in :)

90% of what?
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By the way, we also offer access to the Vanguard Treasury Money Market Fund - VUSXX. If is not a sweep, is not marginable for 30 days, but after 30 days is marginable at 99%. In the same example from before, $100,000 of VUSXX after 30 days provides an excess of $99,000 and if set at 4X, $396,000 of Day-Trading Buying Power. https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx
 
David Donner said:
I am currently in the BIL etf with all my uninvested cash getting GREAT interest and able to intraday trade since BIL is marginable.

How do Treasury Bills brought thru a broker work with margin? The same as the BIL etf? More? Less?

(This will be my first time buying TBills thru a broker and still want to be able to daytrade and want to retain some high interest rates over the next year as I think rates will start to fall & BIL will be paying less and less going forward.)

Thank you for any info you can offer!
More...

Can you please explain what type of margin you're getting? Is it 2:1? Portfolio margin? Prop firm margin (Eg 50:1)? Thanks
 
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