I added Margin to my account last week. Mainly so that I can wait to transfer funds in on an order AFTER it is filled (i.e. I don’t want to transfer money into the account unless a limit order is actually filled).
Today I made my first buy after margin was added. I have ~1187 in my settlement account (SPAXX) and after the successful buy, I transferred 500 in from my outside checking account which would put my cash value at 1687 which is enough to cover the 1,578.45 purchase.
Seems like at this point I have done what needs to be done - just wanting reassurance from someone with margin experience.
Transactions occurring on 04/21/2021 created a margin debit of $1,578.45. Please note that your core account and non-core money market positions will automatically liquidate to pay down this debt before you begin accruing margin interest charges. To avoid paying margin interest, liquidate securities or deposit cash by settlement date.
Check your balance page under total account value. If you look at the spot that says Available to Trade Without Margin Impact in the current column and it shows a positive number you should be good.
That figure represents all the funds including unsettled cash that is available to trade without borrowing on margin. I get that message on a regular basis because I will typically purchase Stocks or ETF’s before the settlement date from fund transfers or sales of other holdings, The only risk is that the funds don’t settle because of some unforeseen circumstance. Worst case would be they sell something you didn’t want to sell to cover it.
In your account, when you buy a security buy it out of your margin account there will be an M right after the number of shares. When you go over the amount of cash you have it will show how much you owe in your margin I think if you don’t go over it doesn’t show on your positions.I buy everything on margin even if there’s money to cover. Then it counts as security for the margin.