Say I have $50,000 cash in my direct-access account (Momentum) that is cleared by Southwest. Just before the close, I buy $100,000 worth of MSFT and I hold it overnight. In the morning, I sell the MSFT for $100,000 and my account once again has $50,000 cash in it. However, according the margin policy that Momentum and Southwest have agreed on, my buying power for the rest of the day is only $75,000.
Did you not once say on here that Momentum did not let you go 4 to 1 with overnights. I thought that was incorrect when I read it at the time and still do. But in you example above, that is what you are just about doing is it not. 100,000 in MSFT plus 75,000 intraday buying power is 175,000 and that is allot more than your 50,000 account.
PDT |
