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Strategies & Market Trends : Classic TA Workplace
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To: Henry J Costanzo who wrote (140655)1/26/2007 12:24:16 PM
From: Patrick Slevin  Read Replies (2) of 209892
 
You misunderstand.

If you have money in a stock account excess funds are shunted into an interest bearing account by the firm. So if you are using $40,000 of a $100,000 account the $60K is allocated to provide whatever...3% for sake of a number.

I've been away from the Equity Markets for so long I've forgotten what those Interest bearing subsets are called, but unquestionably you follow what this is. Similarly, in a Stock Margin Account you are paying Interest on the use of Funds over your equity.

In a Futures account if you have $40,000 tied up in Margin trading contracts the other $60K sits there with no device to allocate it into an Interest bearing subset of your account.

So, rather than allow your unused assets sit there most Futures traders "Park" excess funds in short term Treasuries until needed.

Treasury Direct is completely different.
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