Hi - I don't want to use my TFSA to make day/swing trading income due to risks/CRA. But is it better to trade inside my RRSP or Cash account? RRSP - my gains will be taxed like income come RRIF which I don't think is fair- CRA should only tax contributions but that's life...I can make $200-$3000 every week in capital gains. Thanks
IB margin account for trading + buy and hold portfolio?
Hi there, I need some advice. I have an Interactive Brokers margin account which I use for some trading, do you think its a good idea to also use this account for buy and hold longterm portfolio? This way keep all my positions on the same platform. Or is it better to hold the long term portfolio on a separate cash account? Thanks for the advice!
Getting back on the options trading horse after 20 years away?
OK, there's a lot of preamble here so if you're not in it for the long haul, skip to the end. I used to day trade options in 1998-2001, before decimalization, when dinosaurs ruled the planet. I was fresh out of college and started an account at with IB with $1000. IB was relatively new and was by far and away superior to all of the other retail brokers at the time. I also had a friend that worked for a hedge fund; he let me use their data feed for L2 quotes - again, at that time, a significant advantage over your average retail schmo. Options prices often lagged significantly behind stock prices back then. I could read the tape on L2 and see a particular move coming, buy a call or put @ IB (sometimes even hand picking the slowest option exchange), pay SUPER cheap $1 contract commissions when the norm was $14.95, and could either get a good scalp at minimum or get really good entries on chart breakouts, all day long. I had an IT job that didn't demand much of me, so I could watch things all day and just move in and out of whatever the momentum stocks du jour. I devoured tons of books about the market, technical analysis, etc. during this time and learned quite a bit. At the time, I was too green to do anything involving options strategies more complicated than simple directional calls/puts and wasn't even allowed to with an account that small, if I remember right. Even so, I grew my initial $1000 significantly. It all ended in February 2001, when a little rule called the pattern day trader came about, as I didn't have anywhere close to $25k. My option trading hobby was over. In early January 2020, now with an established career, family, and all that jazz, I decided that it was time to dust off my old trading skills. I've been passively investing for years in standard retirement vehicles and wanted to speculate. I ended up funding a Merrill Edge account with $5k in early March. Good lord, what a terrible platform. I couldn't make sense of it, it looks like it was designed specifically to stop you from making money. The IB interface from 2000 was legitimately better. Anyway, I messed around on Merrill for about a month, took my requisite lumps from IV crush in SPY puts (except I only YOLO'd 2.5% of my account instead of 100%) , before finally deciding that I'd had enough of that trash. I then revisited my old ThinkorSwim account circa 2012 from an old IRA that I opened but never funded. I liked TOS much better, but it was still a bit intimidating to come into "cold". One thing that I've read a lot over the past couple months is that it's just not a good time to be buying OTM directional options for swing trades because of IV crush. I started to look into the concept of selling premium in risk defined trades and it just sounded reasonable to me, given the current climate and my account size. That led me to Tastytrade and Tastyworks. I was attracted to TW because I've read good things about the platform and was intrigued that it was a brokerage specializing in options. This alone was a novel concept to me. So, I opened an account and figured I'd give it a spin. After using it for a couple days and watching a few tutorial videos, TW does seem to have many bells and whistles around options orders and graphical representation of risk, but a lot of that is lost on me at the moment because I'm still trying to get my head around the fundamentals of operating the software. My first impressions have soured me a little. The charting is hot trash. The client periodically crashes on my Mac and can sometimes peg my CPU on PC. The desktop client has a pretty serious rendering bug and is unreadable on a 3440x1440 monitor. I have to use 125% font scaling. I'm not sure how to pop any section of the UI out for multi monitor approaches, and it doesn't seem like you can look at a chart AND submit an order at the same time. Despite all this, I started the TW trading challenge today. I'm not expecting to make anything on it, and it's weird that you're limited to stocks and ETFs, but whatever. I thought $250 would be easy trading /CL today, haha. Hey, I'm short 300 USO @ 2.96, maybe I'll wake up tomorrow and it'll be $1. TL;DR -
What are the best resources to "re-learn" options trading in 2020, assuming you have some prior basic knowledge? I prefer text based / books to watching tons of videos.
Is Tastytrade's basic approach (sell premium, trade small risk defined trades, trade often) still a good one given the current climate?
What are good options strategies that don't require a much trade management? I'm thinking about for when things open back up, I'm back in the office and won't be able to watch my trades all day. Simple stop losses just don't seem as protective when you only have 3 daytrades a week. I need to know which are the lower maintenance strategies I should be pursuing when evaluating trades.
My entire trading experience is largely around day trading and intra-day chart reading. I almost feel like I have to 'unlearn' that mindset in order to succeed at this, when I can't close out immediately when an entry is wrong or mistimed, and stop losses aren't as valuable. What are some ideas for adapting?
How much would I have to have on hand for the times I get assigned? Assuming the standard margin account, trading 5k and risking no more than 5% in any one trade, under 10 positions total. I'm assuming that getting assigned in a tiny account like this is something to avoid at all costs?
I know to stay away from gurus, paid Discords, and am not looking for shortcuts or someone to shadow. I know people just post their successes after the fact. But is there anybody out there worth a damn on the various 'social' trading platforms (Tastyworks' traders featured in the client, for instance)? As you might have realized by the length of this mammoth post, I value thoroughness and verbosity when describing trading processes.
If you made it to the end, congrats. Please help an old man get back on the horse!
Has anyone created a Margin Trading account with TD?
So since my TFSA and RRSP are maxed out, I decided to open a taxable brokerage account (AKA Non-Registered account). I got the confirmation last Friday that the account was open, and realized it may take 2 business days for the account to appear on Easyweb. Yesterday I logged into TD on their phone App and saw that my margin account was open. But, I'm not able to transfer money to the account, and when I log onto the website on a computer, the account is not appearing. Anyone know what's going on? I figure if it's still not appearing tomorrow I'll give them a call, but wanted to see what you guys think in the meantime.
Why does Robinhood warn me about day trading when my account is not a margin account?
Title says all. Not even enrolled in Gold. IIRC pattern day trader regulation only applies to margin account. Edit: Not that I'm trying to earn money day trading. I'm just worried if RH will lock my account if I make a mistake.
Hi, kind of a weird question I have If you were to open an investment account for an LLC in your state, do partners still only risk up to 100% of what their investment into the company is when trading on margin? So say a friend and myself open an LLC and throw $20,000 each into a trading account with margin and we lose more than 100% of the investment, would the partners owe more than 100% like they would in a personal account?
Click image for more information Create a KuCoin account in just 10s and start trading to achieve up to 20x returns on margin trades and 100x returns on futures trades. Stake some of your favorite coins to earn up to 50% interest. Participate in raffles, giveaways, and airdrops.
Hola! Pretty sure I know the answer ... but is the day trade buying power limit .. per trade or per day? Can I day trade 40k unlimited times a day or only up to the dollar amount specified in my day trade limit? I decided to stick it out in RH until I recouped the pre market loss that made me want to cry lol but now I'm about 1k shy of 25k and I am trying to decide if I stay at RH For the cash management or switch to webull for the high DT buying power and day trade limits. Thanks for your feedback
Can I use my TFSA Margin Power to trade option spreads in my Margin Account if I only deposit $1000?
So we’re all aware that it takes $5000 in a margin to get access to option spreads. Now I was looking to open a margin and deposit $1000 and therefore use it to trade with option spreads. Would the Margin Power of my TFSA (Value of around 14000$) enable me to trade spreads, bypassing that $5000 requirement? In other words, is the $5000 figure a Buying Power or a Cash balance figure to trade option spreads? Thanks!
All about the Binance/Kava Margin Trading competition! (Tesla Cyber Truck Prize Package)
On June 8th, 2020 Binance suprised everyone by uploading a gif onto the mainpage of their website that stated Binance & Kava would be hosting a margin trading competition, and that a Tesla Cyber Truck (along w/ about 28,000 dollars) would be given away in prizes! OFFICIAL LINK
Trade KAVA to Win a Tesla Cybertruck! The top trader with the most KAVA trading volume during the activity period will win a Tesla Cybertruck, including a single motor RWD and full self-driving package (worth 47,000 USD). This includes buys and sells across all KAVA trading pairs on both spot and margin. Trading volume completed via isolated margin and will be multiplied by a coefficient of 3.
Lucky Draw - Trade KAVA and Win from a Pool of 27,800 USD in KAVA Tokens. Users ranked 11th, 21th, 31th, 41th, and so forth until the 1991st place of the top 2,000 KAVA traders based on their trading volume (including buys and sells) during the competition period will split a total of 27,800 USD in KAVA. Trading volume completed via isolated margin will also be multiplied by a coefficient of 3.
Zero KAVA borrowing fees on Binance Margin! All users that borrow KAVA from Binance Margin will enjoy 0 borrowing fees and VIP+1 borrowing volume during the activity period. The borrowing structure is as follows:
Valid trading volume counts both buys and sells, excluding any wash trades. Trading volume completed via isolated margin will be multiplied by a coefficient of 3.
If you don’t have a Binance account, click here to get on with a 10% trading fee discount. The 10% trading fee discount will remain valid as long as the Binance referral program is in place.
KAVA trading pairs include KAVA/BTC, KAVA/USDT, KAVA/BNB. KAVA/BTC and KAVA/USDT can support isolated margin features.
The Tesla Cybertruck reward does not include taxes, fees, and shipping fees. The KAVA team supports replacing the Tesla with an equivalent reward in KAVA tokens.
Binance will use the average price of KAVA/USDT trading pairs during the competition period as the exchange rate between USD and KAVA.
Sub-account and margin account trading volume will be combined with the master accounts standard trading volume in the final calculation. Each sub-account will not be viewed as an independent account when participating in this activity.
Binance reserves the right to disqualify trades that are deemed to be wash trades or illegal bulk registration accounts, self-dealing or display attributes of market manipulation, etc.
Rewards will be distributed within 2 weeks after the competition ends. You will be able to login and see your rewards via Distribution History > Wallet > Account Center.
Binance reserves the right to cancel or amend any Activity or Activity Rules at our sole discretion.
Risk Warning (IMPORTANT):
Cryptocurrency investment is subject to high market risk. Binance is not responsible for any direct, indirect or consequential losses as a result of the trading competition. Please make your investments with caution.
Is Robinhood trading on margin for you when you think you're a cash account? You're wrong.
News for you: if you're selling options in any way, including the use of spreads, you're not in a cash account. Spreads must use a margin account. Edit: except selling covered calls, which can be done in a cash account because you own the underlying stock. Selling naked calls not in a spread is as bad or worse than short selling - don't do it. "But I didn't turn on margin!" Well, no, but you're still in a margin account. All Robinhood account are margin accounts when you sign up. That instant buying power and instant deposits features? Yeah, that's margin. All deposits and trades take at least two days to settle. So if you deposit money or sell options or equities, you have to wait two days for the money to be available to trade. Robinhood gets around that by automatically signing you up for margin so you don't have to wait. You just don't have the 2x or 4x buying power until you "apply for margin." If you truly don't want margin, you have to email support to turn it off. This will take away your ability to do options spreads and sell options.
I’ve been upgraded from a cash account to a margin account on E*TRADE and I need some help understanding some terms. Margin Equity Margin Equity Percentage Maintenance Excess I’ve looked it up on the internet already and I’m having trouble understanding. Can someone help me out?
Day trading on Margin Account. Any potential issues in the longer run with the tax dept?
Hi, Sorry if this is a noob question but I read all possible resources online/personal finance sites but could not get a satisfactory answer. I have been doing some day trading on my margin account for over a year now. Not every day but few trades in a week or sometimes even just a few trades in a month. I have made some nominal profits. I reported capital gains in my returns (took the help of a CPA in calculating the ACB value and calculation of taxes on capital gains). It was nominal. My question is if I continue to do day trading and maybe increase the frequency of trades, can it create issues for me in the future with the tax dept? I will make sure to report all capital gains correctly. Will a large number of trades attract any undue attention. I trade a few thousand in day trading ~15k CAD at a time. Can the CRA raise any objection seeing the volume of day trading? I believe mine is still very small to more experienced traders/professional. But just wanted to make sure that these small gains do not unnecessarily result in issues in the longer run. And yes. I do not day trade on TFSA/RRSP accounts. Only the margin account. I would be very grateful if the more experienced folks on this amazing subreddit share their opinion/advice! Thanks a ton!
How do I trade with unsettled funds? Do I need a margin account?
The challenge I'm having right now is I sell my options and then I might want to immediately take a different position, but I have to wait for the funds to settle or if I try to trade again it says I'll get a good faith violation. How do I set up my account so that I can sell my options and then be able to redeploy the cash into something else immediately?
Dogecoin Margin Trading and Saving Accounts Now on OKEx
Cryptocurrency exchange OKEx launched saving accounts and margin trading for meme cryptocurrency Dogecoin (DOGE). According to an announcement shared with Cointelegraph on July 9, OKEx announced that leveraged spot trading, perpetual swap contract trading, and saving features will launch tomorrow for the meme-based cryptocurrency, Dogecoin. OKEx did not answer Cointelegraph’s inquiry by press time. Exchanges […]
Margin trading involves risks, and it is important that you fully understand those risks before trading on margin. The FINRA Margin Disclosure Statement outlines many of those risks, including: You can lose more funds than you deposit in your margin account. Your brokerage firm can force the sale of securities in your account. A margin account is a brokerage account in which the broker lends the customer cash to purchase assets. When trading on margin, gains and losses are magnified. When you open up an account at a broker for day trading, you have the option of choosing either a cash account or margin account.And when it comes to choosing a cash account or margin account, many people have questions about it, especially as a beginner in day trading.I had a friend ask about this on Twitter (follow me on Twitter by clicking here) so I've decided to make an article about it The benefits of margin. When margin is used for investing purposes, it can magnify your profits, but it can also magnify your losses. Here’s a hypothetical example that demonstrates the upside; for simplicity, we’ll ignore trading fees and taxes. Assume you spend $5,000 cash to buy 100 shares of a $50 stock. For margin accounts, there is an account minimum of $2,000 but you will be given 2 to 1 leverage, which means if you have $2,000 in the account you will have up to $4,000 in buying power. When purchasing on margin, some stocks and ETFs may have higher margin requirements than others depending on the security you are looking at.
Margin Strategies: Three Ways to Use Margin & Leverage ...
Have you always wondered what it means to trade on margin? In this video, you’ll learn what margin trading is and if it is a strategy that could help you ach... What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... One trading jargon that you’ll hear very often is margin. It’s usually in terms like margin account, margin trading and even margin call. It seems a bit comp... Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.... Today we will cover the basics of margin for active traders. Using margin can be an amazing advantage but you should be aware of how it actually works to avo...