I'm also good with that...when I'm lost on any subject, I like to say; "explain it like I'm a 5 year old." I use that to test folks that like to use big words when attempting to teach, explain or just conversate. If they can do that then, I'm more inclined to listen...
I’m not even joking I watched over 5 videos and was more confused then when I started and then watched this video and everything is so clear now your a life saver
My dad is a teacher and that makes me respect teachers a lot for the great work they do.and you remind me of him you are a great teacher and plse I pray you enjoy doing it buddy. You are one of the best teachers out here on RUclips first time I’ve seen your material and I’m really impressed with your methods. Thanks for the sacrifice you making. Always remember you are helping a lot of people who needs your help.
Finall after sorting thru channels... I finally found a good teacher on youtube! Subbed :-D do keep up the great work & thanks for your clear breakdown of of info
I watched a different youtuber explain stocks with a notepad in front of me, and every time I was confused or needed to look something up, I wrote it down. Filled up a whole page and felt overwhelmed. I watched 6 of your videos with my pen and paper, and didn't write down any questions. I understand! This is so great, thank you very much. :)
@@claytrader Hey Clay big fan here. Had a question. So I inputted my information in TD Ameritade such as employment, Net Worth, etc.. and it converted my cash account to margin account. How can I revert back to a Cash account from a margin account with TD Ameritrade? Same as George I rather start slow with my own cash.
Hey clay, nice video! I recently got a margin account with Scottrade 2:1. They said the interest is 7%, is that about the standard rate? Also I believe the guy I talked to on the phone said that as long as the position is opened and closed in the same day there is no interest on that money borrowed. Does that sound right? Thanks, I will be looking into your website
I use E*TRADE. I only want to use my own money but I can’t wait for money to clear from multiple trades daily. Is a margin account the answer ? Or will I be paying fees to E*TRADE to cover me until my money clears ?
Great info clay! like your style, no B.S. just the beginning for me and I really like all of the clarification that you provide within terminology. you are really helping my understanding of multiple scenario and I am a big fan.
Thank you for the feedback. Glad you enjoy my style. When you are ready for all the knitty-gritty details of trading, head here claytrader.com/courses/
You explain things in your videos as if your viewer was a 6 year old.... THANK YOU! I need things explained that way. You are the BEST Stock teacher, i'm SO HAPPY I found your page.
Hey Clay, good video...subbed. Got some questions for you, or perhaps you could do a video. 1. When you have a margin account, when are you actually using margin? For example, say a trader has $100k in a margin account that is their cash. Are you trading on margin when you have exhausted your $100k capital on stock, or is each trade on margin? EG I buy $100k of Microsoft. I have no cash to buy more, so additional buys are on margin? Or would the first $100k trade in Microsoft be on margin? I find this confusing as some people say you don't need to use your margin and it can be there when you need it, but I don't see any clear explanation on how to put this into practise. 2. Related to 1 above, when you set a prudent Margin Cushion, what percentage would you suggest and is it based on capital? EG I have $100k of 'my' cash in Margin act, and I set my Margin Cushion at 25%. Does that mean I never borrow more than $25k (so $125k total), or does it mean I never borrow more than $75k (so $175k total) and $25k is the emergency reserve cushion? 3. On Interactive Brokers, you can transfer stock positions between Cash and Margin account. If I do this from Cash acct to Margin acct, is transferred stock subject to margin rules if it was bought with cash on the cash account? Thanks for driving it home that margin is serious business...I find the broker information is not clear and so your videos are very appreciated.
The money in margin account is separate from the cash account, isn't it? . And to get a loan from the broker I've got to have some money in my margin account or no loan, right?
So, if I get it, in laymans terms: You put X amount into this "margin" account, the broker loans you a multiple (the "leverage") of that (the total being called "buying power"). There's an interest rate on the loan ("margin rate"). Ideally you'd be able to make enough gains to make a profit and offset the interest rates. However if you make a loss greater than your original amount, you can end up owing money (as the loan eventually has to be repaid to the original amount?).
There are tons of RUclips videos out there about "what a Margin account is". I was looking for someone to please explain "How to use" or "execute" a Margin trade.. Margin maintenance requirements, minimum balance requirements to use Margin for both Non-Day trading and Day Trading etc.. Can you please make a video detailing how to "execute a margin trade"? What is the maintenance requirement and how does it work? Also, can investors choose the amount or percentage of margin they want to use? Or does it always have to be a 2:1 ratio? Can I invest $10,000 of my own and only use $2,000 margin instead of $5,000???... Please make a video discussing these things. Thank you so much.
Hi Clay. If you can make that video about executing a margin trade that would be great! Thank you so much.. Can you also make a video explaining Short Sell and Buy to Cover?.. If price rises past what you Sold it Short for by 5 or 10 cents before it drops back down again, is that acceptable or is the investor in trouble even for a 5 or 10 cent fluctuation? How much price fluctuation is allowed using the Short Sell & Buy to Cover strategy?
It’s very easy to get carried away fast. I didn’t feel the pain with me charging credit card back in the days and got caught with my pants down when slammed with a huge statement!! I learned my lesson and moved to Debit card. But once again, found myself in a very similar situation with margin account! Yikes!! Be careful out there 🥺🥺
@@claytrader i was... I hope I am not anymore . Your memory is godly... whoa. I even have a slightly different name... my fat black face must be a big giveaway.
please do a video on how funds are settled in a margin account, do you have to wait 3 days like a cash account to trade it again? how it affects the day trader making multiple trades per day. thanks in advance i really like your vids
Clay, First and foremost thank you for your educational videos. They have helped me tremendously in my trading strategies and my account balance has increased approximately 125% since I started about a month ago. I have been trading with a cash account, under the 25k mark and I'm curious how a margin account affects day trading. I'm currently subject to the pattern day trading rules and have been making one or two trades, every three days, once my funds clear. I've almost reached the 25k min and once I do, I know those rules won't apply to me anymore. However, there is still the 3 day turn around time to clear funds. Is this still an issue with a margin account? Thanks for any insight on this topic!
Hey Clay, thank you for your videos, I am learning so much. I have bunch of questions tho... but let me ask you one for now. How do you go about trading on USA stock market when you live, let’s say Africa ?
My Financial advisor told me,” when you buy CFDs you dont own shares, you have contract with the Broker theoretically if the broker goes bankrupt you have no ownership with the shares that is one risk you have to understand that’s why we never hold CFDs for long, like in and out we trade and we get out”. what are your thoughts for that? is it true?
I have a question? If you open a margin account, do you close the account after you're done making your profits or do you just now have a separate account from your cash account? Also, does the money get scaled back down at the end?
Are you familiar with the psth deal? Since we can get into the sparc deal at nav after seeing the company/deal. I feel like it's free money and wouldn't want to sell anything else. Would using margin be smart? Thanks
@@jamesjoe967 if you're interested in "talking stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/
Love how he treats his audience like we are intellectually challenged, and he's absolutely right!
I treat my audience like I treat myself lol
This comment makes my day!!! So true in my case...
I'm also good with that...when I'm lost on any subject, I like to say; "explain it like I'm a 5 year old." I use that to test folks that like to use big words when attempting to teach, explain or just conversate. If they can do that then, I'm more inclined to listen...
😂
😂😂😂😂
I’m not even joking I watched over 5 videos and was more confused then when I started and then watched this video and everything is so clear now your a life saver
Thanks for the feedback. Glad it could help.
Responds to comments 2 years later what a god
haha, I assure you, I'm quite human lol
Same. Almost ready to jump in. This is a great start.
My dad is a teacher and that makes me respect teachers a lot for the great work they do.and you remind me of him you are a great teacher and plse I pray you enjoy doing it buddy. You are one of the best teachers out here on RUclips first time I’ve seen your material and I’m really impressed with your methods. Thanks for the sacrifice you making. Always remember you are helping a lot of people who needs your help.
Thank you for the kind words.
Finall after sorting thru channels... I finally found a good teacher on youtube! Subbed :-D do keep up the great work & thanks for your clear breakdown of of info
Thanks for the kind words. Glad you enjoy!
agreed
Wonderful job. I feel like I am taking a real class! That's what I am looking for. Thanks Clay.
Thank you. Glad you're finding it helpful.
I watched a different youtuber explain stocks with a notepad in front of me, and every time I was confused or needed to look something up, I wrote it down. Filled up a whole page and felt overwhelmed. I watched 6 of your videos with my pen and paper, and didn't write down any questions. I understand! This is so great, thank you very much. :)
Thanks for watching!
Not for me that. I'd rather go slow and lose only money that I own.
I'd say that is very wise.
You don’t own money. Subconscious the reason you trade
@@claytrader Hey Clay big fan here. Had a question. So I inputted my information in TD Ameritade such as employment, Net Worth, etc.. and it converted my cash account to margin account. How can I revert back to a Cash account from a margin account with TD Ameritrade? Same as George I rather start slow with my own cash.
@@larrysheran I'd give TD Ameritrade a call.
instuctions not clear, i got MARGIN CALLED
Please don't use the green marker. It is very hard to see on the whiteboard
You're absolutely right. Yikes!
Hey clay, nice video! I recently got a margin account with Scottrade 2:1. They said the interest is 7%, is that about the standard rate? Also I believe the guy I talked to on the phone said that as long as the position is opened and closed in the same day there is no interest on that money borrowed. Does that sound right? Thanks, I will be looking into your website
y0u better let that green marker scare you into respect!
The margin rates are for overnight holds, so yes, that is accurate. 7% sounds pretty standard.
haha
Great video and a big warning to new investors to stay clear of margin accounts.
Absolutely!
Holy smokes..! Youbarevthe best person with teaching abilities on youtube in my opinion. Thanks alot 👌👌
Cheers
I hate loans. I would stick to cash account as a beginner.
Thanks for enlightening me, Clay!
You're welcome.
Ya kinda like a debit card. Use your margin as a cash account
So I got a margain account but I Applyed As a cash One is that Good? I also got my tsfa as well. Reason why I got the margain account was to buy OTC.
how do you short a stock with a cash account?
@@MultiChrisjb you cant
Love the self-correction analogies as you teach the content. Very genuine and extremely helpful videos.
Glad you enjoyed.
good tool but there is risk of losing money and have debt
you are an honest man and i respect that
using trading simulator batter at the beging
yes, you need to be careful for sure
Thank you 👍 That’s also my principle, always respect the market and respect every penny of your money
Cheers
very helpful for newbies, thanks!
Glad it was helpful!
Definitely cleared that up for me, thanks for the warning too!
You're welcome.
Very, very well explained concepts! Crystal clear Clay! Thanks for sharing! cheers
Thanks for watching!
wow very good explanation! I finally understand...thanks
Glad it could help!
When do you have to pay off the margin debts?
Depends on the situation.
Great Explanation!
Thanks!
This was awesome teaching; thank you Clay.
And thank you for watching.
I use E*TRADE. I only want to use my own money but I can’t wait for money to clear from multiple trades daily. Is a margin account the answer ? Or will I be paying fees to E*TRADE to cover me until my money clears ?
Only pay margin if you are holding overnight.
wow, best video i have watched in a while. Thank you
Glad you enjoyed it!
timeless video thanks for the good explanation..
Glad it was helpful!
So in a margin account, say you put $5,000 in. But you only invest the $5,000 not the $5000 borrowed, would you be charged marginal interest ?
No.
Great video Clay 👍🏻👍🏻 I been learning a lot from you just by watching your RUclips Videos. Proud Clay subscriber here 👆🏻
Awesome, thank you!
Great info clay! like your style, no B.S. just the beginning for me and I really like all of the clarification that you provide within terminology. you are really helping my understanding of multiple scenario and I am a big fan.
Thank you for the feedback. Glad you enjoy my style. When you are ready for all the knitty-gritty details of trading, head here claytrader.com/courses/
great vedio, thanks for that
You're welcome
Finally i get it. Thanks men!!!
You're welcome. Glad it could help.
Great video Clay. I'm brand new to all of this. I have watched all of your Trade 101 videos. I want to learn and start the right way.
First step is surrounding yourself with veteran traders, which you can do here claytrader.com/innercircle/
thank you for lesson.
Thanks for watching
You explain things in your videos as if your viewer was a 6 year old....
THANK YOU! I need things explained that way. You are the BEST Stock teacher, i'm SO HAPPY I found your page.
I'm about as smart as a 6 year old, so yeah, that's how I need to explain it so I understand lol
@@claytrader haha, Well same... and thank you for that!
Excellent explanation of margins. No beating around just straight out forward.
Thanks for the feedback
Great explanation, simplified
Happy to help!
"Im a Trader now" LOL LOL
Love your work man Thanks for all the vids!
Cheers
Thanks Clay!
You're welcome!
so can you open a margin account and use it as a cash account just to be able to also short sell?
Correct.
oh wow, that was fast ..thank you
You're welcome.
@@claytrader beauty!
@@ryannewton5423 cheers
That was an outstanding explanation.
Thanks
Another plus of a margin account is instant settlement of ur funds and u dont get charged interest on that if ur using ur own cash that u put in
True
Wel explained, especially the interest part ..... Thanks again.
Glad you liked it!
Hey Clay, good video...subbed.
Got some questions for you, or perhaps you could do a video.
1. When you have a margin account, when are you actually using margin?
For example, say a trader has $100k in a margin account that is their cash.
Are you trading on margin when you have exhausted your $100k capital on stock, or is each trade on margin? EG I buy $100k of Microsoft. I have no cash to buy more, so additional buys are on margin? Or would the first $100k trade in Microsoft be on margin? I find this confusing as some people say you don't need to use your margin and it can be there when you need it, but I don't see any clear explanation on how to put this into practise.
2. Related to 1 above, when you set a prudent Margin Cushion, what percentage would you suggest and is it based on capital? EG I have $100k of 'my' cash in Margin act, and I set my Margin Cushion at 25%. Does that mean I never borrow more than $25k (so $125k total), or does it mean I never borrow more than $75k (so $175k total) and $25k is the emergency reserve cushion?
3. On Interactive Brokers, you can transfer stock positions between Cash and Margin account. If I do this from Cash acct to Margin acct, is transferred stock subject to margin rules if it was bought with cash on the cash account?
Thanks for driving it home that margin is serious business...I find the broker information is not clear and so your videos are very appreciated.
Good questions... I'll try and see if I can get a video out.
@@claytrader Excellent! Looking forward to it.
Watched a bunch of your videos today. Thanks they are very helpful for me as a beginner.
Thank you for watching!
Love the way you explain!
Thanks for the feedback Saman.
Clay you are the best when it comes to explaning compare to other (youtubers). keep up the good work! thank you so much
Thanks, will do!
Great explanation . Looking to upgrade my account still on the fence though
Glad I could help
Great work here!
Thanks.
great info. Thanks
You're welcome Edvard. Thanks for feedback.
Why haven't I subscribed yet!! After all the information I'm getting from you I should definitely subscribe.
I agree!
Thanks for the information.
Any time!
The money in margin account is separate from the cash account, isn't it? . And to get a loan from the broker I've got to have some money in my margin account or no loan, right?
Correct
You need a margin account to trade credit spreads and other option strategies, but you do have to use it, or borrow from it.
Nope!
thanks man....nice lecture
Glad you liked it
Wow this was very well explained!!! Thank you for making this easy to understand! I also enjoyed your gasoline metaphor. Made sense to me lol
Glad it could help!
Simply explained. Well done bruv.
Thanks for watching.
Very helpful. I was stuck with a book reading over and over 😅
Happy to help!
You are a good teacher.
Thanks!
Great video cleared alot up for me
Happy to hear it could help.
Excellent video. Your descriptions are clear and concise!
Glad you enjoyed and found it helpful.
Hi! Wonderful teaching! Can you do a specific video on how traders technically loose money?
Here ya go: claytrader.com/videos/how-a-stock-can-lose-you-money/
Your the best teacher
Happy to help!
I love your channel ♥️♥️
Thanks!
this exactly what i was looking for
Great!
11 golden minutes in my trading journey. Thank you for making this video! And noted, I will impress the ladies by using this fancy lingo :-D
Cheers
thanks so much , you explain so clear , good job !!!
Thanks. Glad it could help.
So, if I get it, in laymans terms: You put X amount into this "margin" account, the broker loans you a multiple (the "leverage") of that (the total being called "buying power"). There's an interest rate on the loan ("margin rate"). Ideally you'd be able to make enough gains to make a profit and offset the interest rates. However if you make a loss greater than your original amount, you can end up owing money (as the loan eventually has to be repaid to the original amount?).
Right
thanks for the info
No problem!
Clear and honest presentation. Thanks.
Thanks for watching.
Can you please tell me the associated formulas with margin accounts, and margin transactions/purchase, such as rate of return?
Thank you,
Maybe I can do a video someday. Thanks for suggestion.
“Nope - don’t wanna use pink” 😂💕 Love these videos ! It makes sense!!!
Cheers!
Do you have to wait for cash to settle for 2 days to use again with a margin account like a cash account?
No. No cash settlement with margin.
Good teacher 👍
Thank you! 😃
Thank You!! Always wondered what that "margin" thing was on my Schwab account - Nice to know I have that "leverage" :-)
Happy to help!
You should explain more on the benefit using margin acc, i.e capability to short stock and longer settle time.
I have that in other videos.
There are tons of RUclips videos out there about "what a Margin account is". I was looking for someone to please explain "How to use" or "execute" a Margin trade.. Margin maintenance requirements, minimum balance requirements to use Margin for both Non-Day trading and Day Trading etc.. Can you please make a video detailing how to "execute a margin trade"? What is the maintenance requirement and how does it work? Also, can investors choose the amount or percentage of margin they want to use? Or does it always have to be a 2:1 ratio? Can I invest $10,000 of my own and only use $2,000 margin instead of $5,000???... Please make a video discussing these things. Thank you so much.
I'll see what I can do.
Hi Clay. If you can make that video about executing a margin trade that would be great! Thank you so much.. Can you also make a video explaining Short Sell and Buy to Cover?.. If price rises past what you Sold it Short for by 5 or 10 cents before it drops back down again, is that acceptable or is the investor in trouble even for a 5 or 10 cent fluctuation? How much price fluctuation is allowed using the Short Sell & Buy to Cover strategy?
@@MrChad-rs4ki good ideas... I'll see what I can do.
Very helpful 👍👍👍👍👍
Glad to hear that
Thanks for a great video, nice and clear😁
Glad it was helpful!
It’s very easy to get carried away fast. I didn’t feel the pain with me charging credit card back in the days and got caught with my pants down when slammed with a huge statement!! I learned my lesson and moved to Debit card. But once again, found myself in a very similar situation with margin account! Yikes!! Be careful out there 🥺🥺
Well said.
Great explanation. Thank you
Glad it was helpful!
Time to go balls deep on margin! The stock market looks ready to bounce this summer.
I remember you! The degenerate gambler!
@@claytrader i was... I hope I am not anymore . Your memory is godly... whoa. I even have a slightly different name... my fat black face must be a big giveaway.
@@Venture_Warrior glad you've changed your ways!
@@claytrader that sir is some text book 📖 sarcasm
@@Venture_Warrior not true... if you have changed your ways, that's great!
Can you explain deviation and lots
Never heard those terms!
Awesome man
Thanks!
Thank you for the video!
You're welcome.
Thanks so much once again beautifully explained♡♡♡
Thanks for watching!
Do you have a video showing how you physically short a stock online in your account after you open a margin account??
Yes, in many of these live trade videos, I short stock claytrader.com/blogs/live-trade/
please do a video on how funds are settled in a margin account, do you have to wait 3 days like a cash account to trade it again? how it affects the day trader making multiple trades per day. thanks in advance i really like your vids
Thanks for the idea. I'll see what I can do.
"If you're running around like a moron" hahaha literally had me laughing out loud!
haha, it's true though!
yeah, that's the truth!
Clay,
First and foremost thank you for your educational videos. They have helped me tremendously in my trading strategies and my account balance has increased approximately 125% since I started about a month ago.
I have been trading with a cash account, under the 25k mark and I'm curious how a margin account affects day trading. I'm currently subject to the pattern day trading rules and have been making one or two trades, every three days, once my funds clear. I've almost reached the 25k min and once I do, I know those rules won't apply to me anymore. However, there is still the 3 day turn around time to clear funds. Is this still an issue with a margin account? Thanks for any insight on this topic!
This video explains: claytrader.com/videos/trading-academy-101-avoid-pattern-day-trader-rule/
When you trade under a margin account, you only pay interest rate when you borrow or you pay as well even is you don’t need to borrow from the broker?
Only if you borrow.
Hey Clay, thank you for your videos, I am learning so much. I have bunch of questions tho... but let me ask you one for now. How do you go about trading on USA stock market when you live, let’s say Africa ?
You would need a broker that gives you access to USA markets. Interactive Brokers is the company I'd start with.
Depending on the stock, some brokers do not loan money for penny stocks
That is true.
good vid btw, your explanation was very transparent @@claytrader
Thanks.
My Financial advisor told me,” when you buy CFDs you dont own shares, you have contract with the Broker theoretically if the broker goes bankrupt you have no ownership with the shares that is one risk you have to understand that’s why we never hold CFDs for long, like in and out we trade and we get out”. what are your thoughts for that? is it true?
CFDs are definitely risky for these reasons.
Smart ! Thanks for keeping it 💯
You're welcome.
I have a question?
If you open a margin account, do you close the account after you're done making your profits or do you just now have a separate account from your cash account?
Also, does the money get scaled back down at the end?
All broker's are slightly different.
do you need to have 'existing' funds in margin account or can you open one IE kind of like a credit line?
Yeah, you need to have some of your own money in the account.
Nice topic
I have a question: I trade in webull and what is initial requirements and maintenance requirements under margin requirements
That would be a question for their customer service.
Are you familiar with the psth deal? Since we can get into the sparc deal at nav after seeing the company/deal. I feel like it's free money and wouldn't want to sell anything else. Would using margin be smart? Thanks
margin is only smart if you have a good stratgegy
@@claytrader I mean I'll be able to get in at nav. So I could sell on a pop and use the free money to buy shares. So I don't have to sell anything.
@@jamesjoe967 do what you think is best.
@@claytrader are you familiar with the psth/bill ackmam deal?
@@jamesjoe967 if you're interested in "talking stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/
If I have a margin account, can I still use ONLY my money to trade or does every trade from now on automatically include margin?
You can only use cash.
please explain me what is future contract rollover
I offer a free class on futures.
would flipping blue chip stocks over and over again on margin a smart strategy?
That's a bit oversimplified
what's your thought on markets.com are they good, who is your broker ?
Never heard of them. As far as who I use, the answer to that and more: claytrader.com/resources/