Investing on margin allows you to increase your buying power (and therefore, leverage) by borrowing money from your broker (SoFi). The securities that are purchased serve as collateral for the loan, and interest is assessed on the outstanding loan balance.
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General FAQ’s
Regular FAQ’S
Frequently Asked Questions
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What is margin investing
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How does margin work
An account must have a balance of at least $2,000 and be approved for margin trading in order to participate. Then, in contrast to a cash account, buying power is calculated by considering the amount of cash in your account plus the funds you can borrow from your broker. There are a variety of factors that go into this calculation, including overall account balance, current equity, and the specific securities held in your account.
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Can i withdraw cash from my account if i have a debit balance?
Yes, but only to the extent that you have available margin to use for withdrawable cash. Such transactions should be handled with care as not to put your account in a position where a margin call is more likely to be triggered.
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What is a personal loan
A personal loan is money you borrow for any kind of personal use such as paying off credit card debt, investing in home improvements, taking a special vacation, or paying for an engagement ring or wedding expenses. Taking a personal loan can be a smart way to consolidate high-interest rate balances under one monthly rate. To repay the loan, you make monthly payments of principal plus interest. A personal loan gives you the flexibility to make big purchases, then pay it off at a pace that makes sense for you.
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Is margin available in an IRA acoount?
No. IRA accounts are not eligible for margin trading.
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When will interest be deducted from my account?
Your interest due is accured on a daily basis and deducted from from your account once per month This happens automatically and does not require you to take any action
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How is interest calculated
Interest charges are calculated daily by multiplying the outstanding margin debit by the annual rate and dividing the result by 360. these daily figure, navigate to the "buying Power" section of your margin account
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What is stocks
A stock is a share of a company held by an individual or group. one way corporations raise money is by selling stocks, giving stocks owners (also konwn as shareholders partial ownership of the corporation. Stocks a typically bought and sold on what is called an exchange, like the New York Stock Exchange.