Datek Brokerage $9.95 a trade Message Board

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Non-Tech : Datek Brokerage $9.95 a trade

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To: peter michaelson who wrote (7506)	3/24/1998 3:34:00 PM
From: dumbmoney	of 16892

Schwab example: >As mentioned previously, subtract the Short Account value from the Margin Balance to determine if you are earning or paying interest. > >New Credit Margin Balance: $30,000 >- Short Market Value: -$20,000 > ------------- > $10,000 > >Therefore, interest would be earned on $10,000 at a rate of 4% in this example. In the case of my current broker (Waterhouse), you would not earn interest on the $10,000 (because it would be moved from your money market acct to your margin acct). HOWEVER, note that this difference is only relevent if you have a net short position. Normally stock, and not cash, is used for margin.

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