Momentum Daytrading - Tricks of the Trade Message Board

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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade

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To: Spots who wrote (742)	3/18/1998 4:09:00 PM
From: dpl	of 2120

>Each day Schwab marked the position to the market. If the stock rose by 5k (so I had 5k loss), the position would show 55k debit on the short and 50k credit on the proceeds for net 5k debit. In that case, I was charged margin interest on 5k for the day. If the stock dropped to 45k (I had a 5k gain), the position showed 45k debit for stock and 50k credit for proceeds for a net 5k credit, and Schwab paid me free cash balance interest on the 5k for that day. Of course, the margin and free cash interest were cumulative; I'm being sloppy for illustration. This was 2-3 years ago; Schwab may have changed their policies by now for all I know.< Spots,that is exactly the way I remember it.

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