I am a day trader.

So let's say I open an account with $30,000 and have a 4:1 Margin. This means I have a total buying power of $120,000.

If I buy 1000 shares of a stock at $60, and it drops to $59/share, and I sell, I would have lost $1000.

Now my question is:

1) Does that $1000 come out of my "cash account"? i.e. I will a $29,000 left?

2) Will my total buying power with the 4:1 be $116,000?

So let's say I open an account with $30,000 and have a 4:1 Margin. This means I have a total buying power of $120,000.

If I buy 1000 shares of a stock at $60, and it drops to $59/share, and I sell, I would have lost $1000.

Now my question is:

1) Does that $1000 come out of my "cash account"? i.e. I will a $29,000 left?

2) Will my total buying power with the 4:1 be $116,000?

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