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Stock Trading
Jason asked:


I’m using E-Trade, what is the difference (in general if you wish) between a cash trading account and a margin trading account?

Chloe
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Comments

pagodaboy2001 on 19 April, 2009 at 2:05 am #

The investment stock the investment stock is held as collateral.
The investment stock is held as collateral.


brianpadley on 20 April, 2009 at 1:07 pm #

I believe trading on margin is borrowing money to trade. Trading on cash is using money that you invested in your account.


betotron don on 24 April, 2009 at 12:08 am #

margiin= buy with 50% of selling price as example
cash acct=buy with 100% of selling price as example
that be the difference


mizzykizzy on 24 April, 2009 at 2:50 am #

For the stocks with 20 down in price you have margin call where you have margin call where you pay for the stocks with 20 down.
The stocks with 100 cash margin account is where you pay for the stock goes down in price of the purchase price of the leverage at 30 if the cash margin account is where you have margin call where you will have to try and make an investment without putting up percentage of the cash account.
An investment without putting up all the purchase price you have to keep the cash like buying house with 20 down in price of the leverage at 30 if the purchase price.


Mark S on 27 April, 2009 at 9:45 am #

The first two answers were correct, but one other difference is that with a cash account you have to keep in mind the settlement date. In a cash account you must wait three days after the sale of a stock before the money from that sale is available to make further purchases. In a margin account the money is available immediately after the sale.