Basics of Buying on Margin: What Is Margin Trading

How/why am I Margin Trading on TD Ameritrade and how can I stop?

Please understand that this isn't intended to be a click-baity title, nor is this about me raging about impulses I can't avoid. The problem is that about 3 months ago I opened a TD Ameritrade account, I made a deposit and I've spent the last few months making strategic stock purchases.
This is all fine and not margin trading... I thought? I noticed a couple of weeks ago that most (although not all) of my stocks had a "required maintenance" value. It was my understanding that you only have a required maintenance value for your stocks if you are margin trading.
I do not, nor did I ever, intend to make margin trades. What's most odd is that of the 13 stocks I am holding, 10 of them have a maintenance required value while the remaining 3 do not. To my recollection, none of them were purchased in a different way. They were all market purchases on the given day I chose to buy the respective stock.
I have tried my best to buy stocks with only the amount of cash I have available. I'm not interested in buying more stock than cash I have on-hand, but I guess there's a chance I made such a mistake if I misunderstood a value in a cash-available field.
Sorry to ramble, but what I'd really like to know is how could this have happened? In Ameritrade, is regular trading the same as margin trading once you've spent all your cash on hand? If not, are there other reasons why I'm seeing maintenance required values? Is there a way where I can force my account to not be allowed to margin trade, or have the maintenance requirements?
I've tried to search for some of these answers on Ameritrade, but I can't find them. If someone is familiar with this platform and could shed a little light on my errors, I'd appreciate it. My maintenance requirements aren't that bad but still, I'd rather not have them at all. Thank you.
submitted by rlhrlh to stocks [link] [comments]

Margin needed to trade 1 futures contract of Mini S&P 500 on TD Ameritrade

Can someone tell me how much margin i need to trade 1 contract of mini S&P on TDA? The website says the margin is $6,930, but does that scale? I though i read somewhere you only need 10%?
Thank you!
submitted by adrunktherapist to Daytrading [link] [comments]

Does trading with pure cash on a margin account still get you flagged as a PDT under TD Ameritrade?

So here is my current understanding.
If you have a margin account, you must have $25k in order to make 4 intraday deals within a 5 day period.
If you have a cash account, you can make however many trades you want.
But what if you have a margin account but only trade using cash? Will you still get flagged as a PDT? Ive searched online and im having trouble finding a clear answer. Thanks for any input.
submitted by SwuevoT to u/SwuevoT [link] [comments]

Futures day trading margin, TD Ameritrade

Options trader here trying to learn more about the specifics on futures specifically with TD Ameritrade.
Are you able to use day trade margin and day trade micro e-mini contracts for $50 and e mini contracts for $500 as long as you close the position before 5pm? Or does TD Ameritrade not provide this option? Seen it on other brokers websites but cant find anything on TD Ameritrade’s.
submitted by david10121012 to Daytrading [link] [comments]

Trading in IRA with limited margin? TD Ameritrade or TradeStation?

I can't find much discussion about day trading in an IRA and virtually nothing about IRAs with TradeStation. So I'm looking if anyone who does has any insight that could help me.
I was going to open a Roth IRA with Schwab today. Short version is they initially told me I only needed the normal $2,000 for limited margin IRA account. But turns out that wasn't the case when I went to actually open it as the application clearly states you must maintain 25K for limited margin.
I'm not even sure if I want to do cash or limited margin, but I feel best being at a broker where I can enable it if I decide it would be beneficial over cash account. Goal is to keep IRA like 50% long term investments/ETFs and 50% day or swing trading (mostly swing I guess due to PDT rule). I want to get it over 25K as soon as possible for PDT. TradeStation and TD Ameritrade are telling me I just need the normal $2,000 for limited margin. I'm a little concerned that whenever TD Ameritrade integrates with Schwab they could switch to Schwab's rules.
I'm also between brokers for my main trading account though. I'm expecting to use TradeStation, but that isn't certain yet. Not sure if it is really beneficial in any way to have both at the same broker. I was feeling a bit better about having my IRA with Schwab due to the far customer service, website, etc. TS also has a $35 annual fee which is a little annoying when my IRA will be small for now. I opened a TD Ameritrade account to play around with tos but I don't expect to use it for main trading account. An IRA there may be fine though.
submitted by VAN1SH1NG to Daytrading [link] [comments]

I keep getting ads like this, "we will loan you 100k for buying stocks". how very 1929. all being marketed to anyone with a pulse, i got approved for higher level options and derivative trading at td ameritrade and i don't have a job or a real address. lots of margin.

I keep getting ads like this, submitted by MakeTotalDestr0i to economicCollapse [link] [comments]

[help] Trading stocks with margin on TD Ameritrade

I am approved for margin trading and have been able to trade futures just fine, but I would like to leverage trade some tech stocks while I can use my capital in other trades as well. Does anyone have experience with TD Ameritrade for this?
submitted by dosel112132131 to investing [link] [comments]

Robinhood vs Webull vs TD Ameritrade (The REAL Trading & Margin Fees)

Robinhood vs Webull vs TD Ameritrade (The REAL Trading & Margin Fees) submitted by mralexwinkler to SmallCapStocks [link] [comments]

DeFi: Why There is no Need to be Hasty

I have seen many posts across the Cardano community about how ETH’s DeFi rush will give ETH the first movers advantage in a winner take all DeFi ecosystem.
First, I know how anxious many of you feel. We see another project with a fervor of activity while IOG is still working behind semi-closed doors on Goguen. We all want Cardano to live up to its potential and its scary when it looks like another platform is racing ahead.
However, let us take some time to think of this from first principles and ask, “Why is DeFi a winner take all situation?” If you look at the tech ecosystem, platforms that are labeled “Winner take all” platforms are closed systems. Not every business that calls itself a platform, online or not, is not in a winner take all market. That said, winner take all really is a misnomer, even the strongest closed network tech companies with the strongest of feedback loops have competition.
  1. Facebook has TikTok and Snapchat
  2. Amazon has Wayfair while Target and Walmart online are catching up extremely fast
  3. Netflix has Hulu/Disney Plus, HBO Max, Apple TV+, Prime Video and CrunchyRoll
  4. Spotify has Apple Music, Pandora, iHeartRadio, Youtube Music, Amazon Music, Google Music
In the finance space things generally are not winner take all because the system is interoperable (imagine what would happen to Bank of America tomorrow if it announced that it is no longer accepting deposits from other banks?). As an example, I can ACH money from Citibank to UBS, buy stock there, then transfer it with ACATS to Interactive Brokers.
Looking at the financial markets, there are so many different institutions, many of them extremely large.
  1. Banks: Goldman Sachs, JP Morgan, Morgan Stanley, Bank of America, Wells Fargo, Citibank, and Bank of New York Mellon are all massive institutions; and those are just the large bulge brackets, there are a ton more regional banks and smaller institutions),
  2. Brokerage houses: Charles Schwab, Interactive Brokers, Robinhood, Fidelity, TD Ameritrade
  3. Asset Managers: BlackRock, State Street, Vanguard, PIMCO, Wellington Asset Management and JP Morgan Asset Management, all have more than $1 Trillion dollars in AUM
  4. Insurance Companies: MetLife, State Farm, Berkshire Hathaway, Progressive, Allstate, Liberty Mutual, Travelers, Chubb, USAA all write $10s of billions of dollars of premium a year
  5. Hedge Funds: Bridgewater, Citadel, AQR, Renaissance Technologies, DE Shaw, Elliot Management, Bracebridge, Panagora Asset Management all have $10s or $100+ of billions under management, and again those are just the big guys)
Seriously, just go look up how large these companies are. Those are the guys we are going for, not some fly-by-night DeFi script kiddy who lost $200mm dollars because they forgot to call the correct method in their smart contract.
Oh, and that list I included, those are only the large firms. I did not even touch upon the myriad of boutique and regional firms. I also haven't even gotten to any international firms yet, or mentioned other entities like the DTCC, prop-trading firms, family offices, private banks or sovereign wealth funds like GIC/Temasek and CIC with over a trillion dollars under management.
Also keep in mind that while DeFi might feel full of vitality and growth, what are people in the market really doing? What real world activity are people borrowing do to on crypto platforms? People are not borrowing on DeFi to start businesses, build homes or pay for school. They are borrowing to fund margin loans so they can leverage and maximize their yield. It is just a moderately sized casino*** with a cardboard sign duct-taped over that reads "Bank." The current total value locked in De-Fi is $9bn at most which is tiny. I have been at large asset management firms with single accounts with more money than that. Even if De-FI on ETH miraculously grows by 700x without any blowups, it will still be smaller than the AUM of the largest asset management firm by over $100bn.
Lastly, I think people underestimate the issues ETH has ahead of it. Read this medium post and this academic paper about priority gas auctions, DeX front running and transaction ordering dependence vulnerabilities [0, 1] and how this not only impacts users but affects the security properties of the consensus layer. Additionally, ETH 2.0 does little to fix the fee issue, for that they are working on EIP-1559 which is still contentious and will be hard to ship without on chain governance, which also isn't included in ETH 2.0 either. Even further still, ETH will need to do a difficult hard fork to implement these changes, while Cardano has HFC events which are operationally less complex and easier to execute. There are still so many kinks to work out. ETH isn’t the iPhone moment, ETH is pretty much the 10lb Motorola voice only cellphone (more like a blunt weapon) that costs the same as a pedigreed show dog.
TLDR; The market is still in its absolute infancy. The space we all can disrupt is massive. Fighting over the current market is like fighting over a parking space when you have the entire continental United States to explore. While the project can’t stagnate or rest on its laurels (which I don’t think is happening), it can take its time to be methodical to ensure that when the world financial markets are onboarded onto the blockchain that Cardano has the research, codebase, infrastructure and community to step up to the challenge and excel.
*** Las Vegas Sands and MGM Resorts each made more money in the last 12 months--even with COVID--than the TVL of DeFi assets on ETH. Yet, the icing on the cake is that the Macau gambling market is 4x the size of Vegas so even the gambling industry is much bigger than DeFi right now.
[1] (its long but all you need is the first 3-ish pages)
submitted by factorNeutral to cardano [link] [comments]

Will Karaman | A Scammer Who Should be Avoided At All Costs[PSA]

I am posting this here as, many of you are new traders, with little capital in your brokerage account, exactly the type of person who would fall victim to this scam.
Will Karaman(Other aliases: William Karaman, William Michael Karaman) is a person who opened multiple options trading "strategies" that do not give the trader an edge(hint: none do, there is no edge, sorry). Recently, in April, after the Mid-March-Meltdown, he opened two groups(options society and investors society) costing about $500 each.
If you were unfortunate enough to pay for one of these programs, you would receive an invite to a Discord chat to the corresponding group. According to Karaman, he earned, about 70-75k from this scheme(140-150 users from both programs combined). Karaman had amassed a portfolio value of about 400-500k before the revenue from the webinar. After launching this webinar, he had hired a few different people - one of them 'infamously' named "Yanni". After hiring a 'team' of people to run this business. Karaman spent no time, spending his newfound cash on risky FD's(using margin & credit), lavish AirBnBs, renting exotic cars, and doing drugs(K2 & Xanax - He thought he was smoking marijuana and popping adderall?). This, of course, blew up in his face.
On June 20th, everything went dark, Youtube channel was taken down, and all that remained, was a Snapchat story showing a loss of 106,000.00 or 101.5% of his portfolio value on the Robinhood app. He took out a 30K LOC from Chase, and essentially YOLO'd it on SQQQ calls and TSLA puts to achieve this accomplishment. He also lost 40k of his father's retirement money on similar risky options plays(citation needed). Yanni, evidently treated an employee of Modera Central(The apartment Karaman was living in at the time) with disrespect, and caused commotion well after "Night hours" set by the apartment, and the City of Orlando on multiple occasions. This ofcourse led to Karaman being evicted from the apartment. He flew his roommate he was living with at the time to California(citation needed), and he was going to live with him. The roommate, in an act of good judgement, decided not to rent with Karaman, rendering him homeless.
The spice(K2) that was given to Karaman, apparently had some very bad health effects, that led to disastrous use of these two drugs(Xanax a CNS depressant and K2 a stimulant). At this point, he went to the only people who he knew would actually care about him, his parents. His parents very quickly sent him to a drug rehab center for a total of 8 days(Citation needed). While he was there he was prescribed Zyprexa, an antipsychotic used to treat schizophrenia and bipolar disorder; likely indicating his issues are not a direct result of an acute drug addiction.
On July 15th, he announced he was no longer taking the Zyprexa, this led to his last few videos to showcase very unusual and manic, and unstable behavior. He announced personal details, that probably would be taboo or disrespectful to release, such as - Yanni's Parents own the Greek Corner in Downtown Orlando. He held a public meetup at the Robinson in Downtown Orlando, which only 1 of his personal friends showed up, while he claimed adamantly, he had a "whole team", which was discovered to be a lie. He later said, that he was approved for a penthouse apartment at 55 West, this in my logical belief, has to be a lie as well. The apartment in question is a 3 bedroom, 3 bathroom apartment that has a value of ~3,000 monthly rent, and since 55W requires 3x rent in monthly income; that means that Karaman would have to make 9,000/month to live there(notwithstanding his prior eviction, which would disqualify him for renting for 2 years regardless(citation needed).
As of July 19th, his second new Instagram account has been removed, likely for harassing people who DM him for money. Nothing has been heard from Karaman since July 15th. It is likely he is staying in hotels/motels in the Downtown Orlando area, or he lives back with his parents(There is no evidence to support either claim).
On or around July 21st, he allegedly passed out while in public, he was taken to a hospital where he pulled a fire alarm. He was subsequently placed under Florida Baker Act. Once released from the hospital, he made 2 Instagram posts totaling over an hour, trying to get his 'followers' to buy items that were purchased during his manic episode, such as computer parts, MacBooks, books and random electronic items he had accumulated. He claimed the funds would be used to trade option contracts, when he has -$30,000 balance with his Chase LOC, it is assumed he was living with his parents at the time. It is confirmed he was still trading with a $300 TD Ameritrade account, where he verified his losses, totalling over $100,000.
On Tuesday July 28th, he was evicted/kicked out of his parents house by the police, rendering Will homeless. He spent the remainder of that day, wandering around, and later harassing the store manager at the Oviedo Publix, causing another police presence. It is assumed he moved back with his parents by that evening.
Either later that evening, or the evening of the 29th, his parents(or Will himself) called the police. This led to the police placing Will under Florida Baker Act once again, where he was taken to a psychiatric treatment center. I did not pay for this program, but a few over at wsb did, and provided me with information to exactly what happened.
On August 4th, Will Karaman announced his return to social media on his Instagram story.
This is my Wikipedia timeline of this particular scammer. Will Karaman is not the only scamme"stock guru" out there, just the most interesting, we live in a time of incredible access to information, please do not give anyone money relating to any type of stock advice, or trading course.
submitted by cuinlumby to smallstreetbets [link] [comments]

How to not get ruined with options - Part 2 of 4

Post 1: Basics: CALL, PUT, exercise, ITM, ATM, OTM
Post 2: Basics: Buying and Selling, the Greeks
Post 3a: Simple Strategies
Post 3b: Advanced Strategies
Post 4a: Example of trades (short puts, covered calls, and verticals)
Post 4b: Example of trades (calendars and hedges)
This is a follow up of the first post.
The basics: Volatility and Time
Now that you understand the basics of intrinsic and extrinsic values and how together gives a price to the premium, it is important to understand how the extrinsic value is actually calculated. The intrinsic value is easy:
The intrinsic value of a call = share price - strike (if positive, $0 otherwise)
The intrinsic value of a put = strike - share price (if positive, $0 otherwise)
The extrinsic value is mostly based on two variables: volatility of the share price and time.
Given the historic volatility, and the predicted volatility, how far can the share price go by the expiration date? The longer the date, and the higher the share volatility, the higher the chance of the share to change significantly.
A share that jumped from $25 to $50 in the past few weeks (hello NKLA!) will have much higher volatility than a share that stayed at $50 for several months in a row. Similarly, an option expiring in two months will have a higher extrinsic value than an option expiring in one month, just because the share has more chances to move more in two months than a single month.
The extrinsic value is calculated as a combination of both the expiration date (how many days to expiration, hours even when you are close to expiration), and the implied volatility of the share.
Each strike, call or put, will have their own implied volatility. It is quite noticeable when you look at all the strikes for the same expiration. Sometimes, you can even arbitrage this between strikes and expiration dates.
The basics: Buying and Selling contracts
Until now, we have only talked about buying call and put contracts. You pay a premium to get a contract that allows you to buy (call) or sell (put) shares of a specific instrument.
As your risk is the cost of your premium, you can notice that buying options is a risky proposition.
To make a profit on the buying side:
  1. You have to be directionally correct. The price must go up for calls, down for puts.
  2. AND the share price move must be bigger than the premium you paid.
  3. AND the share price move must happen before the option expiration.
You will notice that it is pretty unforgiving. Sure, when you are right, you can make a 100% to 1000% profit in a few months, weeks, or even days. But there is a big chance that you will suffer death by thousands of cuts with your long call or put contracts losing value every day and become worthless.
We were discussing earlier how volatile stocks can have a high extrinsic value. What happens to your option price if the share is changing a lot and suddenly calms down? The extrinsic portion of the option price will crater quickly because volatility dropped, and time is still passing every day.
The same way you can buy options, you can also sell call and put options. Instead of buying the right to exercise your ITM calls and puts, you sell that right to a 3rd party (usually market makers).
To make a profit on the selling side:
  1. You have to be directionally correct.
  2. OR the share price does not move as much as the premium.
  3. OR the share price does not move before the option expiration.
Buying calls and puts mean that you need to have strong convictions on the share’s direction. I know that I am not good at predicting the future. However, I do believe in reversion to the mean (especially in this market :)), and I like to be paid as time is passing. In case you didn't guess yet, yes, I mostly sell options, I don’t buy them. This is a different risk, instead of death by a thousand cuts, a single trade can have a big loss, so proper contract sizing is really important.
It is worth noting that because you sold the right of exercise to a 3rd party, they can exercise at any time the option is ITM. When one party exercises, the broker randomly picks one of the option sellers and exercises the contract there. When you are on the receiving end of the exercise, it is called an assignment. As indicated earlier, for most parts, you will not be getting assigned on your short options as long as there is some extrinsic value left (because it is more profitable to sell the option than exercising it). Deep ITM options are more at risk, due to the sometimes inexistent extrinsic value. Also, the options just before the ex-dividend date when the dividend is as bigger than the extrinsic value are at risk, as it is a good way to get the dividend for a smaller cash outlay with little risk.
In summary:
The Greeks
Each option contract has a complex formula to calculate its premium (Black-Scholes is usually a good initial option pricing model to calculate the premiums).
Things that will determine the option premium are:
There are four key values calculated from the current option price: delta, gamma, theta, and vega. In the options world, we call them ‘the Greeks’.
Delta is how correlated your option price is compared to the underlying share price. By definition 100 shares have a delta of 100. If an option has a delta of 50, it means that if the share price increases by $1, the new price of your option means that you earned $50. Conversely, a drop of $1 means you will lose $50.
Each call contract bought will have a delta from 0 to 100. A deep ITM call will have a delta close to 100. An ATM call will have a delta around 50. Note that on expiration day, as the intrinsic value disappears, an ATM call behaves like the share price, with a delta close to 100. Buying a put will have a negative delta. A deep ITM put will have a delta close to -100. Selling a call will have a negative delta, selling a put will have a positive delta.
Gamma is the rate of change of delta as the underlying share price changes. Unless you are a market maker or doing gamma scalping (profiting from small changes in the share price), you should not worry too much about gamma.
Theta is how much money you lose or profit per day (week-end included!) on your option contracts. If you bought a call/put, your theta will be negative (you lose money every day due to the time passing closer to the contract expiration, and your option price slowly eroding). If you sold a call/put, your theta will be positive (you earn money every day from the premium). It is important to note that the theta accelerates as you get closer to the expiration. For the same strike and volatility, a theta for an option that has one month left will be smaller than the theta for an option that has one week left, and bigger than an option that has 6 months left. In the third post, I will explain how you can take advantage of this.
FWIW, with the current volatility, I get 0.1% to 0.2% of Return On Risk per day, so roughly 35% to 70% of return annualized. I don’t expect these numbers to keep like this for a long time, but I will profit as long as we are in this sideways market. I also have an overall positive delta, so I will benefit as the market goes up, and theta gain will soften the blow when the market goes down.
Vega is how much your option price will increase or decrease when the implied volatility of the share price increase by 1%. If you bought some puts or calls, your vega will be positive, as your extrinsic value will increase when volatility increases. Conversely, if you sold some puts or calls, your vega will be negative. On the sell side, you want the actual volatility to be lower than the implied volatility to make money.
This is why we often say that you sell options to sell the volatility. When volatility is high, sell options. When volatility is low, buy options. Not the opposite. This also explains why some people lose money when playing stock earnings despite being directionally correct. Before earnings, the option price takes into account the expected stock price change, so the volatility is significantly higher than usual. They bought an expensive call or put, numbers are out, share price moves in the correct direction, but because suddenly the volatility dropped (no uncertainty about the earnings anymore), the extrinsic value of the option got crushed, and offset the increase in intrinsic value. The result is not as much profit as expected or even a loss.
Bid/Ask spread
Options are less liquid than the corresponding shares, especially given the sheer quantity of strikes and expiration dates. The gap between the bid and the ask can be pretty big. If you are not careful about how you enter and exit the trade, you will transform a profitable trade into a losing one. Due to the small contract costs, the bid/ask spread adds up quickly, and with the trading fees, they can represent 10% or more of your profit. Beware!
Never ever buy or sell an option at the market price. Always use a limit order, start with the mid-price, or be even more aggressive. See if someone bites, it happens. If not, give up $0.05 or less, wait a bit longer, and do it again. Be patient. If you are at mid-price between the bid and the ask, and you think this is a fair price, and the market or time is on your side, again just be patient. It is better to not enter a trade that is not in your own terms than overpaying/underselling and reducing your profit/risk ratio too much.
Leap options have a very long expiration date. Usually one year or more. ETF indexes, like SPY, can have leaps of 1, 2, or 3 years away. They offer some advantages as they have a low theta. A deep ITM Leap can behave like the stock with 30% of the cost. Just remember that if the share drops by 30% long term, you will lose everything. Watch out! This is a personal experience of mine in 2008, where I diversified away from a few companies to many more companies by buying multiple leaps. It was akin to changing 100 shares into options with a delta of 250. However, when the market tanked, all these deep ITM leaps lost significantly (more than if I only had 100 shares). Good lesson learned. You win some, you lose some.
Number of shares
The vast majority of options trades at 100 shares per contract. But during share splits, or reverse splits, company reorganizations, or special dividend distributions, the numbers of shares can change. The options are automatically updated.
The 1:N splits are easily converted as you just get more contracts, and your strike is getting adjusted. For example, let’s say you own 1 contract of ABC with a strike of $200 controlling 100 shares (so exposure to $20k). Then the company splits 1:4, you are going to get 4 contracts with a strike of $50, with each contract controlling 100 shares (so still the same exposure of $20k).
The N:1 reverse splits are a tad more complex. Say you have 1 contract of ABC with a strike of $1, controlling 100 shares (so exposure to $100). Then the company reverse splits 5:1, you are going to still get 1 contract, but with a strike of $5, with each contract controlling 20 shares (so still the same exposure of $100). You will still be able to trade these 20 shares contracts but they will slowly trade less and less and disappear over time, as new 100 shares contracts will be created alongside.
Brokers and fees
In my experience, ThinkOrSwim (TOS owned by TD Ameritrade, being bought by Schwab) is one of the very best brokers to trade options. The software on PC, Mac, iPad, or iPhone is top-notch. Very easy to use, very intuitive, very responsive. Pricing on contracts dropped recently, it’s now $0.65 per contract, with $0 for exercise or assignment. You may actually be able to negotiate an even better price.
I also have Interactive Brokers (IB), and that’s the other side of the spectrum. The software is very buggy, unstable, unintuitive, and slow to update. I tried few options trades and got too frustrated to continue. Too bad, it has very good margin rates (although if you are an option seller it is not really needed, as you receive cash when you open your trades). However, it’s perfectly acceptable to trade plain ETFs and shares.
Market Markers
Most of the options you buy or sell from will be provided by the Markets Makers. Do not expect that you will get good deals from them.
You will see in the third post how you selling a put and buying a call is equivalent to buy a share. When you buy/sell a call / put from the market makers, you are guaranteed that they will hedge their corresponding positions by buying/selling a share and the opposite options (put/call).
The next post will introduce you to simple option strategies.
Post 1: Basics: CALL, PUT, exercise, ITM, ATM, OTM
Post 2: Basics: Buying and Selling, the Greeks
Post 3a: Simple Strategies
Post 3b: Advanced Strategies
Post 4a: Example of trades (short puts, covered calls, and verticals)
Post 4b: Example of trades (calendars and hedges)
submitted by _WhatchaDoin_ to investing [link] [comments]

Question about how brokerage firms handle merger ticker changes and the agonizing process of splitting my Units...

I'm with TD Ameritrade and just recently started the process of splitting my units for the first time. Good thing I did this trial run because there are a lot of issues I would never have known about here that I'll share:
1) For starters, it's been nearly 10 days since I requested the split and it just started to be processed 2 days ago because I kept calling them to pester them about it (it would have been longer if I didn't.)
2) Even more surprising was when the processing actually started 2 days ago, the CUSIP for my units changed to a random number and THE ENTIRE VALUE OF MY POSITION WAS DEDUCTED FROM MY BALANCE during the processing period (set aside they said...but somehow not in my account). Imagine my shock when I opened my account that morning and it was down huge from that...for no reason.
3) I use some margin for trading and I was surprised by this sudden drop in my balance, so I asked TDA if this could potentially result in a maintenance call if there had been a lot more money in that position. Sorry to confirm to you that, YES, THIS WEIRD ACCOUNTING ISSUE CAN RESULT IN A MAINTENANCE CALL ON YOUR ACCOUNT. Good to know!
4) So, now I'm worried that the same would happen upon ticker change.
Can anyone confirm if the ticker change is also an awkward transition at your brokerage? Especially for TDA? Do they randomly assign a CUSIP during the transition and deduct that amount from your account balance too while it is processing? And if it does have this issue, can it also result in a maintenance call like above? Thanks.
submitted by teaisgoodforme2 to SPACs [link] [comments]

Boneyardbois: Tool Up Over The Weekend.

Ok Lads, we need to tool up. What we need is more people running scanners on specific types of tickers, but we have a drastic shortage of users who know how to do that. I've compiled a very short list of "How to" video recommendations.
Some of these are just basic stuff to get started, not necessarily for scanners, and any other suggestions are requested.
I've listed a few different suggestions, across a couple different platforms. Again, the goal here is to Run Scanners but this might help some of us get up to speed so we can move towards that goal.
Youtube is flooded with crappy "KnOwLeDgE" memes masquerading as trading guru's. So my list is very fucking short, but I'll add more when i find good ones, and please recommend any you know of, that dont start off by show me their yacht collection.
TD Ameritrades Platform Think Or Swim (ToS). This platform does not require a funded account to use, and provides lots of tools.
"Getting started on ThinkOrSwim (ToS)" ~23 minute video by InTheMoney ~couple months old
think or swim ToS
FINVIZ This platform is rather hard to look at. Its alot of info and parsing what you need is tough if you dont get all the extra stuff its displaying, also this platform runs ~20 minutes behind the actual market. This is a broswer platform, no app required, good resource.
"FINVIZ SCANNER" ~16 minute video by Charlie from Ziptrader. ~1 year old
Charlie also puts out videos for penny and non-penny stock alerts. Would highly recommend watchlisting his channel, but you will probably get those horrible "Raging Bull" adds from Google.
"Webull Scanner" ~6 minute video from Ziptrader ~1 year old This is another one from Charlie. Webull is probably one of the better platforms, if your trading from mobile. Which i bet alot of us are right now. The first con of Webull is that account approval can take an hour, or 3 weeks. It is however, a far superior option than Robinhood.
Webull scanner
quick mention for Robinhood The only good thing about Robinhood, is that its probably how you entered trading in the first place. Level two data is an excellent, clean way to check for stuff like sell walls, but thats $5 a month. If your using the free app, you are basically gambling. The interface is gamefied, and reinforces bad habits. You cannot check for confirmation or validation, its just squiggly lines and candle charts you wont be able to interpret meaningfully.
It is however a good place to park unsettled cash, since it will provide you the free day trades. Scope tickers elsewhere, use the extra day trades on RH. If you apply (RH calls it downgrading) for a cash account instead of the standard margin account, you do not require 25k to day trade, and get unlimited day trades. You do however have to wait ~5 business days for cash to settle from any sales you have made.
Scanners people. Scanners. Weed out the vast pile of tickers.
Edits: reformatting, typos, updates as they come. Innacurate information will be struck through but not removed.
submitted by Ghosty_0 to slapchopchap [link] [comments]

Cost of interest in margin trading (stocks)

I am about to start live trade on TOS, for the first time. I have been doing paper trading for a few months. I plan to trade small amounts with minimal risk of loss, in the $10-$20 range, jus to get the hang of it, and test myself in real-time trading. I plan to put the needed 25k for the PDT rule.
The main question I have is about the margin rate TD Ameritrade charges me. What is this rate, and how is this calculated? For example, if I buy a share at $100 and sell at $110, my understanding is that I pocket the $10 (in T+2 time). Is this correct? If not, what should I keep in mind?
Sorry for re-post if any, couldn't find a relevant post in my search.
Thanks in advance for your inputs.
submitted by theaashes to tdameritrade [link] [comments]

Any brokers for non-US citizens?

Im from brunei and would like to trade options and open spreads on margin. However, TD Ameritrade doesn’t allow me (maybe because I’m a student with no job, little trading experience, little knowledge?(I completed their course and got a cert)). I’ve got more than the requirement in the account and even provided a bank statement to prove that I’ve got more $$(less than $50k) in the bank account but somehow they just don’t want to take my money. So Im wondering if there are any other brokerages that lets me open spreads on margin. Thanks!!
Edit: i have less than 50k overall in both bank and tda account and most brokers need at least 100k for option margin.
submitted by AnonToPeople to options [link] [comments]

Margin scenario question

Ok here is my question - because TD Ameritrade's Q & A's on Margin is vague and not to the point.

  1. I have 50k cash balance and 50k margin balance. This gives me $100,000 trading power.
  2. On August 1st, I buy 100,000 @ $1 shares of ZYX @ $100,000 thus using all of my 50k cash and 50k margin.
  3. On September 1st, I continue to hold my position in ZYX which went to $2 so I now have a portfolio of $200,000.

  1. How much am I charged on my margin loan of $50k come September 1st given the current margin interest rates in the link below? I understand margin interest is charged at the end of the month. Also, if I hold the 50k loan in my position until the end of the year, what would be my accrued interest charged? <>
a. Is the charge deducted from my cash balance?
b. If I used up all my cash balance ($50,000), how am I charged the margin interest?

  1. If my Cash balance remains at $0 but my stock price went up, will I receive more Margin power in this case? Is this dangerous to play with since my collateral is in the stock value and not cash value?

  1. How logical is it to use margin for long term stock investments say 1 year at a 50k margin loan?

Thank you to the experts here.
submitted by planeanxiety to tdameritrade [link] [comments]

Cannot sell dropping option position! Over $1000 lost due to TOS order cancellation failure.
I'm typing this real-time. Market closes in 8 minutes.
Here you can see the issue, while trying to sell back a TSLA put, the order became hung and there seems to be no way for me to cancel this and update it with a new order. After trying to cancel/replace that order, as well as attempting to market sell it (unsuccessfully) I've just called into TD Ameritrade and I'm currently on hold with a representative as he attempts to contact the trading desk to force-close the position.
Has anyone else run into this? I'm not sure why this error has occurred. As I write this, the market is closing in 30 seconds and I don't think they'll be able to sell it in time.
The market has just closed, and I got a notification that my position has been sold. I'm still on hold to see if they'll compensate me for the loss I've taken in the meantime.
I've just been told that the market maker had a system outage and TD Ameritrade was not capable of cancelling the order. I still have the option in my account. They're offering me lower options rates and a lower overnight margin rate.
submitted by xblackout_ to thinkorswim [link] [comments]

Amateur confusion

I requested to allow margin trading on my TD Ameritrade account and now I am able to trade on margin. Although I have no plans whatsoever to trade on margin, it appears that is the only way it is allowing me to trade. I have $200+ in total cash in my account but it says my margin balance is -$54.38. I requested to have margin trading removed from my account but I am worried about the balance. What should I do to fix it?
submitted by PimpDaddyDwarf to StockMarket [link] [comments]

Day Trading with a Cash account

I must have missed the memo on this, but TD Ameritrade effectively killed day trading on cash accounts by making the T+2 apply on selling and not allowing a day trade without incurring a good faith violation.
Apparently this went into effect in June and their current work around to make sure you won't be hit with a violation is to check the amount you're able to transfer out of the account before making the trade. So the "Stock Buying Power" isn't an accurate reflection of what you can use to trade.
I was hit with a violation on Monday and called to hear the change in their system. They say that the government is making them do this because of the volatility in the Market.
Anyone know if other brokerage companies are doing this?
It basically forced me to switch to a Margin account so I don't have to deal with this BS. My suspicion is that this is a ploy to have people switch to Margin accounts since cash accounts give them little to no opportunity to make any money.
Anyone have any thoughts on this?
submitted by knowwonder to tdameritrade [link] [comments]

TD Ameritrade API Preventing Real-Time Quotes Despite Following Proper Procedure

Currently, I am getting quotes via the 'quotes' endpoint ( and that is serving my purposes just fine except that I need real-time quotes data instead of delayed data. How can I get real-time data from the API? I am currently receiving quotes that look like this from the endpoint:
{'AMD': {'assetType': 'EQUITY', 'assetMainType': 'EQUITY', 'cusip': '007903107', 'symbol': 'AMD', 'description': 'Advanced Micro Devices, Inc. - Common Stock', 'bidPrice': 81.9, 'bidSize': 700, 'bidId': 'Q', 'askPrice': 81.91, 'askSize': 600, 'askId': 'Q', 'lastPrice': 81.904, 'lastSize': 100, 'lastId': 'D', 'openPrice': 82.8, 'highPrice': 82.88, 'lowPrice': 81.03, 'bidTick': ' ', 'closePrice': 82.42, 'netChange': -0.516, 'totalVolume': 17145097, 'quoteTimeInLong': 1597768913974, 'tradeTimeInLong': 1597768913555, 'mark': 81.904, 'exchange': 'q', 'exchangeName': 'NASD', 'marginable': True, 'shortable': True, 'volatility': 0.0152, 'digits': 4, '52WkHigh': 87.29, '52WkLow': 27.43, 'nAV': 0.0, 'peRatio': 153.4, 'divAmount': 0.0, 'divYield': 0.0, 'divDate': '', 'securityStatus': 'Normal', 'regularMarketLastPrice': 81.904, 'regularMarketLastSize': 1, 'regularMarketNetChange': -0.516, 'regularMarketTradeTimeInLong': 1597768913555, 'netPercentChangeInDouble': -0.6261, 'markChangeInDouble': -0.516, 'markPercentChangeInDouble': -0.6261, 'regularMarketPercentChangeInDouble': -0.6261, 'delayed': True}}
I believe the final flag in red that reads "delayed:True" is what is causing the 15-minute or so delay in the quotes received via the endpoint. Is there a way to change this to be "delayed:False" and get real-time data?
Here is what I tried so far:
0) Made sure I was authenticated by getting account data for the account I want to use via the API. This confirms OAuth 2.0 was successful.
1) I followed the advice here: I signed to > Client Services > Signed all three agreements > Subscriptions> Activated Real-time quotes subscription (currently active on both accounts). I am set up as non-professional.
2) Called the regular phone line (1800-669-3900) to speak to a representative. They confirmed that my account is set up properly for real-time quotes and directed me to the email address . They were not kidding about the 1-2 month response time for the API email. No response yet.
3) I singed out and signed back in multiple times and also waited three hours after subscribing. I am still getting delayed quotes via the quotes endpoint one week later.
4) I re-read the documentation at for this endpoint and I do not see why I am getting delayed quotes. It seems as though real-time quotes should be possible.
5) I tried switching to the streaming API to get real-time quotes over WebSockets instead. The WebSockets connect but then I receive no more responses from the API, no matter how many requests I send. I confirmed with the Windows firewall that exactly one request and response always happen, which is the socket connecting, I believe. No other data comes over and the recv() promise is awaited forever.
I am new to python, web APIs, and algo trading. Help a brother out?
I hope this posts helps other who are having similar problems.
TL;DR - Quotes are still delayed from TD Ameritrade 'quotes' api endpoint despite configuring properly. What do?
Update: For those asking, yes I am properly authenticated. I confirmed this by pulling account data via the 'accounts' endpoint successful for the account that has access to real-time data.
I have also done more troubleshooting.
6) I verified think-or-swim is showing live quotes without issue, reconfirming it is not a problem with my account as previously shown by the web portal allowing real-time quotes.
7) I got on live chat via think or swim and had the rep bump my email request with api@TDA response team.
8) I got a response from the api@TDA email address telling me that this can happen when not authenticated. I Immediately responded telling him that I have been authencated the whole time through OAuth 2.0. In response they only sent a link to how to authenticate via OAuth 2.0. I responded again saying I was already successfully authenticated (Hence account info via API). I got no response from the api@TDA team since the link. All further communications have been ignored or pushed to tommorow since that exchange. Not very helpful. Hopefully they get back.
Final Update: THE SOLUTION Ok, problem solved. I knew the answer would be that I'm an idiot and now it's confirmed.
As it turns out, I did not fully understand Oauth2.0 despite having success using it. I was under the impression that authentication occured once per session, allowing authenticated requests as long as a valid auth token had been sent recently. That is false. Authentication happens once per request, which means EVERY request that you want tied to your account and your needs an access token passed in the header along with it. Otherwise it comes through as an anonymous request from TDA's perspective and authenticated-only features may be limited or denied. This can be tricky if you are not aware of it when using endpoints that have both an authenticated and non-authenticated version.
As soon as I changed my code to send my valid access_token in the 'Bearer' section of the header to the quotes API... delayed:False Facepalm It was one line of code. One line that I had written dozens of times over too. I can't believe I've done this.
I wasted a lot of people's time this week with such a spectacular faceplant. I hope to make up for it in the off chance that one of the two people in human history that manage to make the same mistake stumple upon this post and avoid wasting their own time.
TL;DR - An access_token should appear in the header of each and every request you send that you want to send as 'authenticated', not just the first that you want to be authenticated. Doing so is the only way to get the the full featureset of each API endpoints.
submitted by Bahazbz to algotrading [link] [comments]

FOREX trading on TD Ameritrade

I have been trading paper FOREX for a few months now on Think or Swim. When I tried to trade FOREX live, TD Ameritrade said I had to apply for margin and options approval (Options Level 2). I was approved for margin, but got rejected for options level 2. When I asked the rep how I can get the option 2 approval he said I had to complete an options course on their website which will give a certificate. Once I do that I need to reapply, but no guarantee that I will be approved for options level 2. He said I was rejected because of my profile and net value and those things and that I need Options level 2 to even start trading FOREX.
Anyone have this experience with TD Ameritrade? What platforms do you use for FOREX?
Thank you.
submitted by theaashes to thinkorswim [link] [comments]

NYSE Trading from NZ

Hi all, I have been attempting to day and swing trade the US market using TD Ameritrade over the past month or so.
My question is, does anybody have experience as a kiwi trading the US markets and if so, is the PDT rule enforced on kiwis with US brokerage accounts?
I would like to be able to short stocks if I see a good setup and to do this you need a margin account. In America margin accounts with a value of less than 25,000 USD are limited to 3 day trades in a 5 day period, which is obviously detrimental to what I am trying to achieve.
submitted by tryabaconslice to PersonalFinanceNZ [link] [comments]

TD Ameritrade - YouTube Margin Trading 101: How It Works - YouTube How To Get $3.95 Per Trade  TD-Ameritrade Why I Use A Margin Trading Account! - YouTube 160. How to Buy and Sell Stocks on Margin - Live Examples

† Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges subject to TD Ameritrade review and approval. Carefully review the Margin Handbook and Margin Disclosure Document for more details. You should have two accounts 1. a cash account and a margin account. If you want to pay 100% of the price, submit the order to your cash account. 2. If you prefer to use some leverage buy the stock in your margin account and you can borrow 50% pop... Margin trading privileges subject to TD Ameritrade review and approval. Carefully review the Margin Handbook and Margin Disclosure Document for more details. Cash in the IDA is held at one or more banks Program Banks. Two of the Program Banks are TD Bank, N.A. and TD Bank USA, N.A., both affiliates of TD Ameritrade. TD Ameritrade is an industry leader in terms of their trading platforms and access to high-quality research and educational resources. Throw in a $0 minimum deposit requirement, detailed user guides and access to after-hours trading, and they should be a serious contender on your broker shortlist. TD Ameritrade pattern day trading rules and active trader requirements. Margin buying power limits, and $25,000 minimum equity balance PDT restrictions. How many day trades does TD Ameritrade allow on cash account. TD Ameritrade Pattern Day Trading

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TD Ameritrade - YouTube

Forex Margin - Duration: 4:28. TD Ameritrade 4,969 views. 4:28. 65 videos Play all Slow Motion Swings Jason Down; How To Use TD Ameritrade ThinkorSwim in 2019 ... RSI Trading: Most Powerful Way ... Trade Ideas Scanner Live for Day trading Stock Market STOCKS ROCKS 164 watching Live now Day Trading Strategies for Beginners: Class 1 of 12 - Duration: 55:18. Welcome to TD Ameritrade's YouTube channel, the place to find videos that demonstrate our online trading platforms and technology as well as explain our inve... How To Avoid Pattern Day Trading Rule Cash Account VS. Margin Account - Duration: 23:37. The Boiler Room 115,311 ... TD-Ameritrade Day Trading - Duration: 19:41. The Boiler Room 21,015 views. It can be a little scary deciding which account to choose when you are just getting started? Should you use a cash or margin account and which is best for yo...