Katie: So that funds available section there is gonna show us funds available to trade with as well as funds available to withdraw. It's gonna start with again reiterating that cash and cash investments that we can use to trade which is going to equal cash and cash investments on the left in this account.
We've also got settled funds. Trade settlements can matter if you're going to be actively trading in your account or if
you're gonna place multiple trades especially if you have a cash account or if you're trading non marginal securities knowing whether or not your funds are settled when you make the purchase can help you know whether or not you may incur a trade violation if you choose to sell that security purchase in the next day or two.
So definitely something good to keep an eye on. We've also got available to day trade this line will only be here for those of you folks that trade with a margin account.
Margin is required for pattern day trading and so that line item will be displayed there there's also cash plus cash borrowing that's going to tell you if you're gonna trade a regularly marginal security in a margin account what is the maximum market value that you can purchase in this account right around ten thousand so that funds available section there Is gonna show us funds available to trade with as well as funds available to withdraw.
It's gonna start with again reiterating that cash and cash investments that we can use to trade which is going to equal cash and cash investments on the left in this account.
We've also got settled funds.
Trade settlements can matter if you're going to be actively trading in your account or if you're gonna place multiple trades especially if you have a cash account or if you're trading non marginal securities knowing whether or not your funds are settled when you make the purchase can help you know whether or not you may incur a trade violation if you choose to sell that security purchase in the next day or two.
So definitely something good to keep an eye on. We've also got available to day trade this line will only be here for those of you folks that trade with a margin account. Margin is required for pattern day trading and so that line item will be displayed there there's also cash plus cash borrowing that's going to tell you if you're gonna trade a regularly marginal security in a margin account what is the maximum market value that you can purchase in this account right around ten thousand.
And so definitely a good number to pay attention to estimate not really something that you really need to pay
too much attention to but it is used to calculate some of our trading buying power.
We've also got this "to withdraw" section that's going to show up in this account just cash and cash investments, and then we don't have any borrowing available you have to borrow from a margin account nearly two thousand dollars worth of
security to borrow again this account is mostly cash we've got about a hundred and twenty seven dollars worth of stock
So we can't borrow against that quite yet, so the borrowing figures will be zero and we have no cash on hold.
Then we've got margin details in buying power
This section would detail if we were borrowing any money from Schwab and we had purchased let's say that ten thousand dollars worth of stock the dollar amount that we would be borrowing the dollar amount subject to interest would be shown here it would also show your month to date interest owed, Interest at Schwab is accrued daily and paid monthly so that number does update every day.
We also on this page have a link to the margin buying power
I'm on the left there if you click on that Kevin it will show us exactly what our buying power is for a number of different securities as you can see we've got equities in ETFs mutual funds short selling non marginable fixed income and options.
So it's broken down specifically for which is really convenient for us traders to know how much buying power we have for any particular trade that we're looking to make.
Also on the screen we have a link to the margin rate so if you want to click on that it'll display the current margin rate that Schwab has available for margin borrowing.
It's broken out by debit balance. So the amount that you're borrowing and then it breaks down the effective rate, this is an annual rate and like I said we accrue interest daily and charge it monthly over the course of the year this the effective rate that you could expect to pay.
Kevin: and that effective rate could also compound over time to see the longer that you could hold a margin balance the interest also could accrue on that debit balance as well which could be subject to interest as well.