How do I avoid freeriding and good faith violation in a margin account? Do I just purchase with my sale or deposit proceeds and then sell anytime? Do I need to designate the trade as a cash trade or margin trade? How does it work?
Secondly, if the securities in my margin account are loaned out by my broker, how can it affect my tax liabilities? Can I lose long-term cap gain tax benefits, etc?
Thank you.
Free riding and violation of good faith in a margin account?
free riding is when you buy shares with money still unsettled. it settles in about 2 days after you sell.
scottrade is very strict with that. they warn you once, second time you're out.
name latin
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