Help me understand margin


Margin is a part of your funds that your broker sets aside from your account balance in order to keep your trade open and make sure you have enough money to cover any future losses.


 
The risk to the brokerage house of an unsecured debit arising from market action between trade date and settlement. It's not intended to protect you, but rather to protect the house against an unsecured debit. Not for strategy-based margin, but for risk-based.
 
Herkfsu said:
I have a general understanding of how margin works and have historically just focused on my excess liquidity and SMA balances to make sure I am in the black. But can someone help me understand a couple of things? In the example below I have ~$20k in short box spreads and about half of my assets in mutual funds and half in ETFs.

1. Why is my initial and maintenance margin the same? I know Mutual Funds have 100% margin for the first 30 days, but ETFs don't and most of my Mutual Funds were bought >30 days ago.

2. Why is my Reg T margin different than my initial or maintenance margin? Reg T margin doesn't seem to affect my excess liquidity or SMA balances.

3. Is it safe to just focus on excess liquidity and SMA balances to avoid a margin call?

View attachment 291952

Thank you!
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When they do you in, pray its someone who knows where to shoot :):D

Stay away from margin, brother. This is not the time to go there.
 
margin_gamble said:
When they do you in, pray its someone who knows where to shoot :):D

Stay away from margin, brother. This is not the time to go there.
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Good shot+ good points MarG ;
but when they liquidate its all most always a fire sale, ready\ fire-shoot\Funny unless it happens close to ones own home.
Herkufsa may be on to something with his simple moving average\ not that would help with a margin call/ but that'$ is a good trading- investing helper..........................
Some call moving averages =moving average ribbons[MAR]
 
murray t turtle said:
%%
Good shot+ good points MarG ;
but when they liquidate its all most always a fire sale, ready\ fire-shoot\Funny unless it happens close to ones own home.
Herkufsa may be on to something with his simple moving average\ not that would help with a margin call/ but that'$ is a good trading- investing helper..........................
Some call moving averages =moving average ribbons[MAR]
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I gaining some good respect for moving averages lately. Of course my fav one I always use and am good at is the 200-pd. But I've been thwarted trying to use other averages. Not anymore. The door has opened and this time I will nail down a good system that is so automatic it needs no more than a glance now and then

I first saw the MAR being used on the 34 ema by a chick named Horner. It looked good but it did not click for me.

FIRESALES are taking place all over the place, especially real estate in ever increasing locations.
 
Margin is the difference between the total value of an investment and the extra amount borrowed from a broker to purchase an investment.

In forex trading, any margin level above 100% is considered good according to me. It's calculated as the ratio of your Equity to the Margin you're using for open positions, using the formula: (Equity/Used Margin) x 100.In margin trading, it is best to buy your positions slowly over time rather than all at once.
 
margin_gamble said:
I gaining some good respect for moving averages lately. Of course my fav one I always use and am good at is the 200-pd. But I've been thwarted trying to use other averages. Not anymore. The door has opened and this time I will nail down a good system that is so automatic it needs no more than a glance now and then

I first saw the MAR being used on the 34 ema by a chick named Horner. It looked good but it did not click for me.

FIRESALES are taking place all over the place, especially real estate in ever increasing locations.
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200 dma = good;
50 day moving average sometimes, but more bid\ ask spreads...................................
And 50dma really will not help against a margin call
 
murray t turtle said:
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ALMOST the same\
50 week moving average............................................................................
But it's really is for FRI close/LOL:D
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The 50-week moving average has been showing up a whole hell of a lot lately on YouTube TA channels and people swear by it, reminiscent of the bygone era when foreplay had centerstage
 
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