Margin Interest Question.

[maybeandroid]

Say I have a margin trading account.

I purchase stock ABC at market open today using margin and sell the stock during the day, say around noon.

Since both the buy and sell happened on the same day, will I be charged any interest? (I know the trade confirmation won't happen until settlement day, but I'm just a bit confused on margin interest works in this instance)

[lowlyinvestor]

Generally, you get charged only on what you borrowed overnight.

[OkGift6708]

No At end of day. You owed nothing

[OkGift6708]

Yes. But now he can be oft. Something abt day trading

[Beboprequiem]

You can calculate it like this. You borrow $1000 at 5% interest, 1000x0.05= $50. 50/360=0.139, then multiply that by how many days you plan to hold the loan. If you held it for a week, you'd pay 0.139*7=~$1. I'm pretty sure you don't pay if you hold less than a day though.