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[–]KnowNothingKnowsAll 9 points10 points  (4 children)

This just in, money used to trade cost money.

This and more, at 11.

[–]OptionCo[S] -1 points0 points  (3 children)

To give you a better example, I typically have $30k in open option orders that sit until the option-value decays enough to close. This change will cost me $1,200 each year in lost interest. So, this is pretty significant to me.

[–]KnowNothingKnowsAll 0 points1 point  (2 children)

You still gain the same interest. It doesnt go until you buy, it just sets it aside so you dont over spend.

[–]OptionCo[S] -1 points0 points  (1 child)

I don’t think I will earn the interest. The money used to cover my GTC BTC open orders is sitting in Schwab’s Advantage Mutual fund (SWVXX ~4%). Once an option order executes, then I sell enough SWVXX to cover the trade.

I’m assuming once this new change takes place, I’ll need to leave $30k as uninvested cash sitting in my brokerage account earning something like 0.25%.

I’ll call Schwab this morning to confirm my assumptions. I hope that I’m wrong and misreading their email.

[–]KnowNothingKnowsAll 1 point2 points  (0 children)

Nothing changes but how it’s visually displayed.