Question about margin (borrowing overnight)

S

Sky123987

Hi,

Question 1
If the interest rate of borrowing stocks is 6%. and you borrow overnight from Monday to Tuesday, what is the interest rate you pay?

A) Principle * (0.06 / 365)
B) Principle * (0.06 / # business days)


Question 2
If the interest rate of borrowing stocks is 6%. and you borrow overnight from Friday to Monday, what is the interest rate you pay?

A) Principle * (0.06 / 365) * 3
B) Principle * (0.06 / 365) * 1
 
Question 1

for USD answer is (C) Principle * (0.06 / 360) * 1


Question 2

for USD answer is (C) Principle * (0.06 / 360) * 3


Note that the margin interest calculation works by settlement date not the trade date.
 
Quote from jeb9999:

Question 1

for USD answer is (C) Principle * (0.06 / 360) * 1


Question 2

for USD answer is (C) Principle * (0.06 / 360) * 3


Note that the margin interest calculation works by settlement date not the trade date.
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