I didn't realize I was trading on a margin until I saw that my account said caution. Now I'm trying to figure out how much money I used on margin so that I can deposit that amount. 🤔
Might get flagged as a pattern day trader, and your account size can handle that so but be careful, I use a margin account but because I trade under the tutelage of a senior trade analyst Sir Benjamin H. Ravies with his expertise I make good profits
Just beat my benchmark for the year at £ 300k and I trade on a margin account too, only lack of expertise will make you fail in trading and seeing it as a get rich quick scheme
Nice video. I do think one needs to change their account type to margin, as long as one meets the requirements. I don't think the account type changes automatically. I do not trade on margin either but there are advantages in having such an account, namely access to all option strategies. And options are not as scary as many people think. Think a conservative, even somewhat of a chicken investor, that's me. Nonetheless, I love trading options (different strategies) and i do it with my relatively modest account of less than 50K. I am a dividend investor and i think options complement my dividend strategy perfectly. I thought this video would cover some of these, but it was a great video for beginners nonetheless. Second video i watch in your channel and I like the style. The finance space on YT is going to crap with the top YTs. I am sick of their constant hype. Because I like the subject and i like to see what other people are doing, i get more enjoyment of smaller channels. It's fun to see what other people are doing. Keep going!
I clicked multiple videos and resources just to understand these margin things ..but all talks around the bush wasting my time. Thanks, Bro, you just explained it to the point and exactly how a beginner would understand. I will be a homie and will refer to your videos for all my future questions and concerns. Especially, I highly recommend your content for beginners, your explanation is easy, authentic and genuine, and to the point. Ugh some make it rocket science to me and I'd even get confused ...
This video may not be the latest and greatest but it was the perfect video for what I needed to know and was hard to find on RUclips thank you very much. I like your style and you have a new subscriber !
This is a great video mate. I like your videos. They are Straight to the point and very easy to follow with simple words so we can finally understand how the stock market works.
Same here, I checked Others Vlogrs, and some of them make it like rocket science when they explain as if we all audiences are investors instead of just explaining it in simple plain English, I think they don't assume some of us beginners are totally newbie and don't understand at all the terms, so they skip the basic elements in the explanation and by the time you get to 10min into the video you're lost ....that's why I like Bob's content. Straight to the point and very easy to follow
Thank you...I’m totally new to investing real $ (paper) & new to Webull. So now I understand why I chose money against my friends advice. I barely have the 500 to invest let alone a 6.99% rate if my margins are off. Thank you! Liked, subbed!
@@BobSharpe Absolutely! Truly helped me understand something I didn’t know anything about. While I was in the middle of account creation I stopped, looked this up on the web, led me to RUclips, found you...answered! You’re really helping others like myself with your content. Thank you again! Respectfully...Ian
Like right off the bat due to having your pop up on Q! Might b the 1st time I seen it done that smooth my man ill b watching 1st time investor dnt sleep on the quiet ones . Could use a good source.
Been doing weeble for about a year I'm glad I came across your videos it makes sense about margin versus want to do it with cash balance. Now I can adjust my cash balance LOL
UPDATED VIDEO: ruclips.net/video/4CEw1ZNjBMs/видео.html I hope this video helped break down the Margin. I don't use margin personally as I don't like to borrow money from anyone or anywhere (not even borrowing from a brokerage with Margin 😃). Get your free stocks with your Webull account if you haven't already: sweetlifesuccess.com/go/webull
@bob sharpe you are wrong with the margin percentage, if you day trade with margin you won’t get billed the whole 6.99 % because that and annual percent bud. A 3000 dollar day trade using margin comes out to be 0.5% around there once you sell it that same day. You calculate it by 6.99 divided by 12 months which comes out to be 0.5825 because even tho it’s a day trade they charge you a month of the margin when you day trade👍🏻 it’s ok anveryone makes mistakes
So I use margin account to buy stocks. But I don’t day trade. I just buy and hold for months. How much interest am I gonna be charged? It says annually, so I’m not gonna be charged more than that 7% on the borrowed money, right?
Been trading for 4 months now and didn’t even know I was using a margin🤦🏻♂️ and I’m so good at it too.. currently at $17k still don’t know if that’s my money or theirs if I sell all my stocks🤦🏻♂️😭😂 since im on margin.. I’m freaking out! Help please!!
I'm a few days new to webull. Question: you have $55 cash balance, couldn't you sell some stock and use what you got from your sale, to buy other stocks?
Yes absolutely! Here is an example: If I want to buy a share of Apple (which is around $125-ish right now), I couldn't buy a full share with only $55 cash balance. So, what I could do is either transfer more money into my bank account to get the $125 to buy a share of Apple, OR, sell another equity (stock/ETF) that I own and use the cash I get for the sale towards buying Apple.
I owe 10k in Margin on TD Ameritrade. Had no Idea I was borrowing to buy stock as cash balance was always positive, so I thought..... Gonna hold my stocks for a bit.. But, in hindsight. Should've did more homework on YT. Thanks for sharing these videos
You can definitely change your account type to cash under your "account details" if you don't want to use it by accident. There are advantages in having a margin account even if one does not use margin. One of them is access to all option strategies. I do not recommend jumping into options without proper understanding, but it's not rocket science and i would suggest you look into it a bit to see if it's something that fits your style. I am super conservative, and i do like to use options, despite being a hardcore dividend investor. These are not mutually exclusive strategies. Again, do a little of research. You might find something you like. Above all, keep greed in check, stay with realistic expectations and keep investing. All the best.
So for me personally (of course I can't give financial advice) I never sell at a loss - unless the company would be going completely bankrupt or something. I've been holding on an ETF that was originally down over 50%!!! Now it's finally back to a loss of 1%....I will hold until I make a profit, and if it looks promising ongoing, I'll hold it even longer 😃
as an outside viewer who has never seen your channel before i don’t care about your opinion, i want the information that i came here for, not your opinion or personal things
I dont represent the majority here, and I don't suggest that anyone try to replicate my scenario. That said, I am formerly an industry professional. I retired at 38 years old and have a liquid net worth of more than 1m. I use margin as part of my income strategy, but I have a negotiated rate of 2%. Many people who are in debt fail to understand the difference between good debt and bad debt. Borrowing at 2% and holding that debt at 2% is great for me, as my growth is higher. My dividends pay more, so I am basicly printing free money. There are risks. Healthy borrowing limits are important to avoid maintenance call. If you dont know what a maintenance call is, dont consider margin. Understand the risks of what you are doing it before you do it and you are likely to be successful. Failure to understand the risks welcomes a probability of failure. Dont be a fool. Do your research. Understand your investments, or don't invest.
Fuck margin. I deposited $500 in my account yesterday and bought right away. I woke up today to a $8.50 margin call. I hope this doesn’t keep happening. I need to we this a cash account as soon as possible. I’ll never buy a stock again until my deposit fully goes through. This isn’t going to happen every day until my $500 full deposits is it?
Nice info but you left out a lot. If your on margin qith less that 25k your under the PDT rule and cant trade more than 3 times a week. Also if your a cash account you can short a stock or do put options.
correct me if I'm wrong but I believe you are only charged that interest if you hold your position past stock market closing time, so like I don't think you get charged the interest on margin if your buying and selling same day.. Please correct me if I am wrong.
You all need to understand that interest on the margin is small, when compare to what you can earn or lose on leverage. You can for example borrow 10k to buy dividend stock ARR, get 10 cents per share every month $200, interest only $58.25. Net profit $1700 yearly after interest deducted. Pay taxes on $1700, because interest vis deductible. Just set aside some cash for in case a margin call.
For margin, there is a margin maintenance amount (you can find this by clicking on "detail" under your main account in the app). As long as you maintain above the maintenance margin, you would be OK to stay in margin; however, if your account balance drops below the required maintenance, you'd either have to sell existing positions in your portfolio to make up for the margin (debt), or, transfer money in to satisfy the margin call.
There is a reason that they say the S&P 500 over the years have always gone up, that is because if one of the stocks in the S&P 500 have some loosing years they are kicked out of the S&P 500. Thus the S&P only has to claim them during the growth years which keeps their numbers up. Over the past 40 years I have followed Chevron stock, when I started it was listed in the S&P 500, then the bottom fell out of the price of cruide oil and Chevron took a big hair cut and the S&P 500 kicked Chevron out and replaced it with another stock that was doing great keeping their numbers up. Years later the priced of cruide oil went way up driving the price of gasoline way up and Chevron profits and stock price way up with it. Yep, S&P 500 kicked out one of their underperfomong stocks and returned Chevron to one of their S&P 500 stocks to help keep their number up. They use a word game and numbers game to make you think that their stock will always be a winner in the long run. Research how many companies have gone bankrupt that were once in the S&P 500 to find the truth. Research how many were booted out and replaced by a new company. Look at GMC who was kicked out of the S&P 500 and needed a hand out from our goverment of $50 billion to stay afloat only to be returned to the S&P 500 4 years later once it started showing a profit again.
Mentions a couple times in the video that links to the other videos talked about would be added, but all I see is links to various promotions and solicitations. Unfortunate because I wanted to watch the other videos referenced.
@@BobSharpe I appreciate the offer. Too much time has passed though and I don't recall. Don't have time to rewatch it. But it's the parts in the video where you say you'll include the links in the description. Thanks for your efforts.
How did you have all those thousands of dollars of margin trading money in the beginning of this video when your cash balance was only $55? I thought it had to be over $2000 to get margin credit?
Hey quick question. All I want to be able to do is do option spreads and condors with Webull. But I need to have a level 3+ in order to do so. And the only way to do that is by having a “margin account”. But I don’t want to even borrow money, I just want to options benefits. Can I have a margin account, get a level 3+ account, and not have to borrow any money? Thanks :)
Great question! No, for margin you wouldn't have to pay any margin interest as long as you close your position within the day. You would still pay the standard SEC fees that everyone pays (these are usually pennies on the dollar fees, but aren't charged by Webull). Full details on that piece here: webull.com/pricing
@@BobSharpe thanks man. I usually am in and out of trades within 1-3 minutes. I finally got enough to bypass PDT so I am transferring everything to webull. I was using multiple brokers and cash accounts lol
@@BobSharpe I'll prob wait until my next paycheck to add in some more $ to give me a good buffer on my $25k. My plan is to snowball the crap out of this. I love trading. Appreciate the info and advice
I agree with you to buy stocks it's better to use the settled cash balance. How about if you are shorting? Can we use the cash balance to short stocks?
Unlikely. Imagine you have 1k. And loses 5k from short. How do they get that difference from you assuming they do not have direct access to take from your bank?
Bob what happens if you want to buy stocks can you put some money in can you make a mistake not have enough money for some of the stocks does it automatically go into margin when you really don't want it and go whoops and put your own money back in
My cash balance is negative 160$ what does this mean I also have a cash account and I had a (good in faith) warning when I bought clov and sold in 2 hours
Do you have cash transferring into the app? If you do and it's not fully settled, the your balance may go negative until the funds are fully transferred in from your funding source (bank/etc). Also keep in mind day trading rules apply (this is a Gov't financial law not Webull). This means if you day trade more than your limit you could get a warning or suspended. Once your portfolio hits $25,000 or more then you are released of any day trading limits 😃
New here. So when first setting up my account do i select cash account or margin? Can you select margin but just use the cash you have? And if you could explain the good faith violation?
Margin can be an idea so you can use it in the future if you want to. I chose margin but only use the cash I have available. As far as a good faith violation, A Good-Faith Violation (GFV) occurs when you liquidate stocks that were bought with unsettled proceeds. Each Good-Faith Violation will stand in your account for 12 months and automatically expire on the 13th month. No cash deposit or stock liquidation will alleviate the violation.
I have 43 bucks in my cash balance but I can't buy or transfer that money to my bank account. Just shows my 19 bucks for settled cashed. Help.. Need the 43 bucks to buy more crypto stocks.
So basically if I have a cash account with less than 2k, anything above my cash balance is considered margin still? Like say I have settled cash & this happens.
The key would be a total net account value of 2k or more (this means value of your stocks/ETF/crypto + anything in cash buying power). This allows you to trade on margin if you wanted to above the cash buying power that you have.
So I use margin account to buy stocks. But I don’t day trade. I just buy and hold for months. How much interest am I gonna be charged? It says annually, so I’m not gonna be charged more than that 7% on the borrowed money, right?
Hi, let's say you went over your cash balance and bought a share of a company, now you're in the margin territory. Can you then deposit enough money to offset the margin borrowed? I'm thinking as long as your cash balance is positive, then you're not on margin, but when your cash balance is in the negative then you're in margin again. Is that right?
If you have under $2,000 in your Webull account you'll be set with a cash account only. If you are above that and have a margin account, if you go into your settings and select "cash account" you'll be changed to only cash.
question , so when you said you lost money , is it your money from your bank account Or is it from the money you have in your account ? & also , if a stock tanks and the value is negative is that debt or just that just mean it has 0 cash value
I have a Roth IRA with Webull I dont understand why I cant buy crypto just stocks can you explain why they would limit what I can buy with my money on Roth IRA ??? plus I didnt know I had another bull account cash $500 dollars it margin but I made a account this year I transferred stock from fidelity 8k tradition for some reason I cant with the bigger account to margin from cash smh every time I try to it tells me I have previous margin account I don know if Webull customer service can help me with this ????
at 10:30 you say dont sell at the bottom. i hear and sort of agree depending, to buy more. i am brand new so i am a newby or noob, i am i right though????????
Yes good point, if you have faith in the company/stock/ETF and it's down - most consider this a "buying opportunity" to get more shares at a "discount" relative to what the future stock price value will grow to over the long term.
Hey brother I appreciate that the video explain everything very complete I just had a question I’m kind of confused it’s my first day on a cash account and I don’t know whether my cash and my unsettled cash or the same somehow because my unsettled cash plus my settled cash equals my cash balance have you ever seen that before is the unsettled the settled? Does that make sense?
![Tee Grizzley - Robbery 8 [Official Video]](http://i.ytimg.com/vi/34_vkNV6wrU/mqdefault.jpg)
Margin is Credit.
There.. i easily explained it.
True!
Some might not fully understand he's just breaking it down for everyone
that was the smoothest, almost felt unintentional transition into a referral link i've ever witnessed on yt lol
I didn't realize I was trading on a margin until I saw that my account said caution. Now I'm trying to figure out how much money I used on margin so that I can deposit that amount. 🤔
Switch to cash account
Ons 😂
@@shadowbannedmgtowman9045 how do you switch
Thanks for the video, I was about to make a very bad decision as a complete newbie and choose margin instead of cash while signing up for my account
video summary:
beginner ≠ margin account ❌
beginner = cash account ✅
nice video , clean n clear , u deserve more credit
wish everyone green everyday
Thanks!
Hey men if I have 35,000 dollar in webull in cash account and buy 35,000 in stocks en sell same day if I see a profit
And buy a more stocks same day can I do that if the many isn't settled yet without get penalty?
Might get flagged as a pattern day trader, and your account size can handle that so but be careful, I use a margin account but because I trade under the tutelage of a senior trade analyst Sir Benjamin H. Ravies with his expertise I make good profits
Just beat my benchmark for the year at £ 300k and I trade on a margin account too, only lack of expertise will make you fail in trading and seeing it as a get rich quick scheme
You’re fine you’d be over 25k for the PDT penalty
Good sir you have my heart and a new subscriber!! Most definitely a beginner and you’re making it so much simpler to understand stocks!!
Nice video. I do think one needs to change their account type to margin, as long as one meets the requirements. I don't think the account type changes automatically. I do not trade on margin either but there are advantages in having such an account, namely access to all option strategies. And options are not as scary as many people think. Think a conservative, even somewhat of a chicken investor, that's me. Nonetheless, I love trading options (different strategies) and i do it with my relatively modest account of less than 50K. I am a dividend investor and i think options complement my dividend strategy perfectly. I thought this video would cover some of these, but it was a great video for beginners nonetheless. Second video i watch in your channel and I like the style. The finance space on YT is going to crap with the top YTs. I am sick of their constant hype. Because I like the subject and i like to see what other people are doing, i get more enjoyment of smaller channels. It's fun to see what other people are doing. Keep going!
Thanks so much - really good comment and good points. More content to come!
Sometimes woody from Toy Story is gold…. Lol you found a good one.
I clicked multiple videos and resources just to understand these margin things ..but all talks around the bush wasting my time. Thanks, Bro, you just explained it to the point and exactly how a beginner would understand. I will be a homie and will refer to your videos for all my future questions and concerns. Especially, I highly recommend your content for beginners, your explanation is easy, authentic and genuine, and to the point. Ugh some make it rocket science to me and I'd even get confused ...
So what do you prefer? Cash or margin?
i can appreciate a guy who will show a negative P&L
I do that all the time to my co-workers
This video may not be the latest and greatest but it was the perfect video for what I needed to know
and was hard to find on RUclips thank you very much. I like your style and you have a new subscriber !
Wow, thank you!
I’ve used margin in my Robinhood account. I only go up to 20% margin
This is a great video mate. I like your videos. They are Straight to the point and very easy to follow with simple words so we can finally understand how the stock market works.
Thank you! Glad they are helpful 😄
Same here, I checked Others Vlogrs, and some of them make it like rocket science when they explain as if we all audiences are investors instead of just explaining it in simple plain English, I think they don't assume some of us beginners are totally newbie and don't understand at all the terms, so they skip the basic elements in the explanation and by the time you get to 10min into the video you're lost ....that's why I like Bob's content. Straight to the point and very easy to follow
As soon as you said beginner apps at 7:57 ish. I hit that subscription button. Yes. Truth. Hate margine. Love cash account.
Thank you for explaining, very informative. Can’t wait to pay off my margin on Webull to turn it off.
Thank you...I’m totally new to investing real $ (paper) & new to Webull. So now I understand why I chose money against my friends advice. I barely have the 500 to invest let alone a 6.99% rate if my margins are off. Thank you!
Liked, subbed!
Glad it was helpful! Welcome to the subscriber family!!
@@BobSharpe Absolutely! Truly helped me understand something I didn’t know anything about. While I was in the middle of account creation I stopped, looked this up on the web, led me to RUclips, found you...answered! You’re really helping others like myself with your content. Thank you again! Respectfully...Ian
Like right off the bat due to having your pop up on Q! Might b the 1st time I seen it done that smooth my man ill b watching 1st time investor dnt sleep on the quiet ones . Could use a good source.
Been doing weeble for about a year I'm glad I came across your videos it makes sense about margin versus want to do it with cash balance. Now I can adjust my cash balance LOL
Glad it was helpful!
Subscribe just because you said you want to pay off your house and you hate being in debt. Same here
UPDATED VIDEO: ruclips.net/video/4CEw1ZNjBMs/видео.html
I hope this video helped break down the Margin. I don't use margin personally as I don't like to borrow money from anyone or anywhere (not even borrowing from a brokerage with Margin 😃). Get your free stocks with your Webull account if you haven't already: sweetlifesuccess.com/go/webull
Thank you so much for your honest thoughts abt margin, saved me
Glad it was helpful!
Ha! I lost money on nio a few years ago. Funny hearing you talk about them.
My acct is margin but i only have 200 dollars in it ever
@bob sharpe you are wrong with the margin percentage, if you day trade with margin you won’t get billed the whole 6.99 % because that and annual percent bud. A 3000 dollar day trade using margin comes out to be 0.5% around there once you sell it that same day. You calculate it by 6.99 divided by 12 months which comes out to be 0.5825 because even tho it’s a day trade they charge you a month of the margin when you day trade👍🏻 it’s ok anveryone makes mistakes
You should also emphasized that interest charge applies only if you hold stocks overnight.
True - good point
meaning?
So I use margin account to buy stocks. But I don’t day trade. I just buy and hold for months. How much interest am I gonna be charged? It says annually, so I’m not gonna be charged more than that 7% on the borrowed money, right?
This is what I was looking for lol
@@chaitanyachaudhary7858calculated daily in that annual rate
You answered couple questions I had. Thx
You’re welcome!
Been trading for 4 months now and didn’t even know I was using a margin🤦🏻♂️ and I’m so good at it too.. currently at $17k still don’t know if that’s my money or theirs if I sell all my stocks🤦🏻♂️😭😂 since im on margin.. I’m freaking out! Help please!!
Same boat man..
help this guyyy
😭😭😭😭😭😭😭😭
What end up happening bro
25 to life 🤦
Thanks for this video it was very helpful and I was kinda lookin for this topic to be talked about 👍👏
Awesome! I’m glad it helped 😃
Explaination is so clear. Thks man
I think webull said your 1st account opened is automatically a margin account?
If I buy an option or buy a share, will they automatically apply my cash balance first until I run out and then margin? Great video btw!
New investor and new subscriber here. Thanks
Welcome aboard!
I'm a few days new to webull. Question: you have $55 cash balance, couldn't you sell some stock and use what you got from your sale, to buy other stocks?
Yes absolutely! Here is an example: If I want to buy a share of Apple (which is around $125-ish right now), I couldn't buy a full share with only $55 cash balance. So, what I could do is either transfer more money into my bank account to get the $125 to buy a share of Apple, OR, sell another equity (stock/ETF) that I own and use the cash I get for the sale towards buying Apple.
I really appreciate this video. You should've gotten some AMC 😉
Next time! 😂
AMC is junk
@@windowwasherfpv3485 😂😂
The percentage is an ANNUAL RATE not a Day rate
I owe 10k in Margin on TD Ameritrade. Had no Idea I was borrowing to buy stock as cash balance was always positive, so I thought..... Gonna hold my stocks for a bit.. But, in hindsight. Should've did more homework on YT. Thanks for sharing these videos
You’re welcome - glad it was helpful!
I wish we could turn off the margin, but Thanks for making kick ass content Mr Sharpe, cheers.
You're welcome, thank you!
You can definitely change your account type to cash under your "account details" if you don't want to use it by accident. There are advantages in having a margin account even if one does not use margin. One of them is access to all option strategies. I do not recommend jumping into options without proper understanding, but it's not rocket science and i would suggest you look into it a bit to see if it's something that fits your style. I am super conservative, and i do like to use options, despite being a hardcore dividend investor. These are not mutually exclusive strategies. Again, do a little of research. You might find something you like. Above all, keep greed in check, stay with realistic expectations and keep investing. All the best.
Thanks. Love your video. Try IPO play sir. Im giving the potential IPO thats gonna pop more than a 100% for a day when they open
at times I find webull confusing to navigate.
Yes it can be a bit tricky. Is there anything in particular I can show on an upcoming video?
Exactly what I wanted to know 👍🏻
I'm glad this was helpful!
Confused... You never even talked about a cash account or the PDF rule on the margin account....
YOU have made this so easy to understand! Thank you! I chose cash account 😁
Also I wanted to ask, what if you're down 15% on a stock you own. I'm still holding though.
Glad it helped!
So for me personally (of course I can't give financial advice) I never sell at a loss - unless the company would be going completely bankrupt or something. I've been holding on an ETF that was originally down over 50%!!! Now it's finally back to a loss of 1%....I will hold until I make a profit, and if it looks promising ongoing, I'll hold it even longer 😃
@@BobSharpe the way you should do it!
@@DreaDom Buy more while it’s down
I'm here right now for webo and my subscribe to your channel I need to learn more things
very helpful! thanks
as an outside viewer who has never seen your channel before i don’t care about your opinion, i want the information that i came here for, not your opinion or personal things
Ok…thanks for the feedback.
What is overnight bp on WeBull?
I dont represent the majority here, and I don't suggest that anyone try to replicate my scenario.
That said, I am formerly an industry professional. I retired at 38 years old and have a liquid net worth of more than 1m.
I use margin as part of my income strategy, but I have a negotiated rate of 2%.
Many people who are in debt fail to understand the difference between good debt and bad debt.
Borrowing at 2% and holding that debt at 2% is great for me, as my growth is higher.
My dividends pay more, so I am basicly printing free money.
There are risks. Healthy borrowing limits are important to avoid maintenance call. If you dont know what a maintenance call is, dont consider margin.
Understand the risks of what you are doing it before you do it and you are likely to be successful.
Failure to understand the risks welcomes a probability of failure. Dont be a fool. Do your research. Understand your investments, or don't invest.
why would people use margin thats stupid
Fuck margin. I deposited $500 in my account yesterday and bought right away. I woke up today to a $8.50 margin call. I hope this doesn’t keep happening. I need to we this a cash account as soon as possible. I’ll never buy a stock again until my deposit fully goes through.
This isn’t going to happen every day until my $500 full deposits is it?
What is 6.99% annually for 13k margin, if you only used it for a few weeks? Do math and use the margin to show fee structure.
Webull is requesting 0.01 $ for me to pay .. do i just buy a few more penny stock or do i just deposit more money in my account.. please reply.thanks
I have margin in Webull but i ignore it and only used available cash buying power. Margin sucks and dangerous so use margin with caution.
how’s stocks going for you now?
6% annual rate, not a day!
So if I have a margin account but I only buy an amount of stock with cash I have transferred from my bank I'm not trading on margin?
Correct
So margin is like getting a loan from webull idk kinda confused lol
it's like using a credit card to buy shares.
Will they provide margin for options?..
Differences of cash and margin account effects option trader?
Can you make a video how to withdraw cash
Here you go - this should jump right to the section of the video where I take you thru withdrawal of cash: ruclips.net/video/rYb-9LF88h0/видео.html
Nice info but you left out a lot. If your on margin qith less that 25k your under the PDT rule and cant trade more than 3 times a week. Also if your a cash account you can short a stock or do put options.
correct me if I'm wrong but I believe you are only charged that interest if you hold your position past stock market closing time, so like I don't think you get charged the interest on margin if your buying and selling same day.. Please correct me if I am wrong.
You are correct! Most people don't PDT so they end up keeping it overnight and getting hit with those interest charges.
@@BobSharpe Thanks for the response!
You all need to understand that interest on the margin is small, when compare to what you can earn or lose on leverage. You can for example borrow 10k to buy dividend stock ARR, get 10 cents per share every month $200, interest only $58.25. Net profit $1700 yearly after interest deducted. Pay taxes on $1700, because interest vis deductible. Just set aside some cash for in case a margin call.
how do you pay back margin, if you lose a trade?
For margin, there is a margin maintenance amount (you can find this by clicking on "detail" under your main account in the app). As long as you maintain above the maintenance margin, you would be OK to stay in margin; however, if your account balance drops below the required maintenance, you'd either have to sell existing positions in your portfolio to make up for the margin (debt), or, transfer money in to satisfy the margin call.
There is a reason that they say the S&P 500 over the years have always gone up, that is because if one of the stocks in the S&P 500 have some loosing years they are kicked out of the S&P 500. Thus the S&P only has to claim them during the growth years which keeps their numbers up. Over the past 40 years I have followed Chevron stock, when I started it was listed in the S&P 500, then the bottom fell out of the price of cruide oil and Chevron took a big hair cut and the S&P 500 kicked Chevron out and replaced it with another stock that was doing great keeping their numbers up. Years later the priced of cruide oil went way up driving the price of gasoline way up and Chevron profits and stock price way up with it. Yep, S&P 500 kicked out one of their underperfomong stocks and returned Chevron to one of their S&P 500 stocks to help keep their number up. They use a word game and numbers game to make you think that their stock will always be a winner in the long run. Research how many companies have gone bankrupt that were once in the S&P 500 to find the truth. Research how many were booted out and replaced by a new company. Look at GMC who was kicked out of the S&P 500 and needed a hand out from our goverment of $50 billion to stay afloat only to be returned to the S&P 500 4 years later once it started showing a profit again.
Thank you! I undesrtstand now!
I’m glad this helped!
Mentions a couple times in the video that links to the other videos talked about would be added, but all I see is links to various promotions and solicitations. Unfortunate because I wanted to watch the other videos referenced.
Ah dang it - sorry about that. Which video were you referencing? I'll be sure to link it up here and fix that!
@@BobSharpe I appreciate the offer. Too much time has passed though and I don't recall. Don't have time to rewatch it. But it's the parts in the video where you say you'll include the links in the description. Thanks for your efforts.
How did you have all those thousands of dollars of margin trading money in the beginning of this video when your cash balance was only $55? I thought it had to be over $2000 to get margin credit?
LOL bought NIO above $40
thanks bro
Thanks for your information sir bob
You're welcome 😃
Seems like u can kinda milk it.. i think 1000 dollar margin will only cost 70 dollars.. a good etf can prolly back that back bob wyt?
You should offer personal training!
My day trade bp is down (negative) 30x the amount is used. My overnight is 0. What does that mean?
Chileeee Nio's at $19 now 😩 what did u end up doing about Nio?
Should I sale all my stocks in AMC..AND DOGE..AND TRANSFER TOO A CASH ACCOUNT...
can you change your account from a margin account to a cash account?
Hey quick question. All I want to be able to do is do option spreads and condors with Webull. But I need to have a level 3+ in order to do so. And the only way to do that is by having a “margin account”. But I don’t want to even borrow money, I just want to options benefits. Can I have a margin account, get a level 3+ account, and not have to borrow any money? Thanks :)
what about for intraday traders? where we don't hold overnight and i get in and out of stocks within minutes? woudl we still have to pay a fee?
Great question! No, for margin you wouldn't have to pay any margin interest as long as you close your position within the day. You would still pay the standard SEC fees that everyone pays (these are usually pennies on the dollar fees, but aren't charged by Webull). Full details on that piece here: webull.com/pricing
@@BobSharpe thanks man. I usually am in and out of trades within 1-3 minutes. I finally got enough to bypass PDT so I am transferring everything to webull. I was using multiple brokers and cash accounts lol
@@BobSharpe I'll prob wait until my next paycheck to add in some more $ to give me a good buffer on my $25k. My plan is to snowball the crap out of this. I love trading. Appreciate the info and advice
I agree with you to buy stocks it's better to use the settled cash balance. How about if you are shorting? Can we use the cash balance to short stocks?
Unlikely. Imagine you have 1k. And loses 5k from short. How do they get that difference from you assuming they do not have direct access to take from your bank?
Bob what happens if you want to buy stocks can you put some money in can you make a mistake not have enough money for some of the stocks does it automatically go into margin when you really don't want it and go whoops and put your own money back in
My cash balance is negative 160$ what does this mean I also have a cash account and I had a (good in faith) warning when I bought clov and sold in 2 hours
Do you have cash transferring into the app? If you do and it's not fully settled, the your balance may go negative until the funds are fully transferred in from your funding source (bank/etc). Also keep in mind day trading rules apply (this is a Gov't financial law not Webull). This means if you day trade more than your limit you could get a warning or suspended. Once your portfolio hits $25,000 or more then you are released of any day trading limits 😃
@@BobSharpe
Im - 340 how i go back to cash
New here. So when first setting up my account do i select cash account or margin? Can you select margin but just use the cash you have? And if you could explain the good faith violation?
Margin can be an idea so you can use it in the future if you want to. I chose margin but only use the cash I have available. As far as a good faith violation, A Good-Faith Violation (GFV) occurs when you liquidate stocks that were bought with unsettled proceeds. Each Good-Faith Violation will stand in your account for 12 months and automatically expire on the 13th month. No cash deposit or stock liquidation will alleviate the violation.
If you’re not an experienced trader I would highly recommend you use a cash account.
Came here cause I thought this was Ben affleck
I have 43 bucks in my cash balance but I can't buy or transfer that money to my bank account. Just shows my 19 bucks for settled cashed. Help.. Need the 43 bucks to buy more crypto stocks.
So basically if I have a cash account with less than 2k, anything above my cash balance is considered margin still? Like say I have settled cash & this happens.
The key would be a total net account value of 2k or more (this means value of your stocks/ETF/crypto + anything in cash buying power). This allows you to trade on margin if you wanted to above the cash buying power that you have.
Can’t wait for t+1!!
If I use 5k from the margin, when will I pay it? Is it monthly or one time? Your reply will be very helpful. Thanks
What do you need to be approved tho?
So I use margin account to buy stocks. But I don’t day trade. I just buy and hold for months. How much interest am I gonna be charged? It says annually, so I’m not gonna be charged more than that 7% on the borrowed money, right?
Wait I'm confused, I just realized I had a Margin account, I Deposited 2k of my money and bought 2k worth of stocks. Am I paying a fee?
Hi, let's say you went over your cash balance and bought a share of a company, now you're in the margin territory. Can you then deposit enough money to offset the margin borrowed? I'm thinking as long as your cash balance is positive, then you're not on margin, but when your cash balance is in the negative then you're in margin again. Is that right?
But can’t you have a margin account and disable the borrowing part ?
Than you!!!
You bet! Nice name too 😄
How can I get a cash account
If you have under $2,000 in your Webull account you'll be set with a cash account only. If you are above that and have a margin account, if you go into your settings and select "cash account" you'll be changed to only cash.
Does margins count towards shorting stocks
question , so when you said you lost money , is it your money from your bank account Or is it from the money you have in your account ? & also , if a stock tanks and the value is negative is that debt or just that just mean it has 0 cash value
I have $622 in my cash balance why I can’t use that in my crypto buying power
Hello. It's called control. They limit you how much you can buy stocks or cryptocurrency.
I have a Roth IRA with Webull I dont understand why I cant buy crypto just stocks can you explain why they would limit what I can buy with my money on Roth IRA ??? plus I didnt know I had another bull account cash $500 dollars it margin but I made a account this year I transferred stock from fidelity 8k tradition for some reason I cant with the bigger account to margin from cash smh every time I try to it tells me I have previous margin account I don know if Webull customer service can help me with this ????
Does cash trades allow short selling
What if I have an cash account with $25k or greater does the PDT rule apply, or can I make unlimited trades?
Once you hit $25k+ you can have unlimited day trades
at 10:30 you say dont sell at the bottom. i hear and sort of agree depending, to buy more. i am brand new so i am a newby or noob, i am i right though????????
Yes good point, if you have faith in the company/stock/ETF and it's down - most consider this a "buying opportunity" to get more shares at a "discount" relative to what the future stock price value will grow to over the long term.
Hey brother I appreciate that the video explain everything very complete I just had a question I’m kind of confused it’s my first day on a cash account and I don’t know whether my cash and my unsettled cash or the same somehow because my unsettled cash plus my settled cash equals my cash balance have you ever seen that before is the unsettled the settled? Does that make sense?
🫤