Last month I blogged about opening up a new Interactive Brokers account to invest in stocks. I’ve received some reader’s questions since then. So in today’s follow-up post, I’d like to discuss the following topics. 🙂 How to Open an IB Account How to transfer funds between TD and Interactive Brokers How margin accounts work with IB How to… Read More »
I just sold my first covered call this morning 🙂 The proceed was deposited into my trading account and I am now $68.76 richer, yippee! I should do this more often (^_^) What does it mean to sell (or write) a covered call option? A “call option” is a contract between a buyer and a seller where the… Read More »
How margin loans work If you already have a regular cash account for trading stocks, you may want to consider getting a margin account as well. You can also convert your existing cash account into a margin account. There is no additional risk in doing this. You only take on more risk IF you buy more than what… Read More »
If you’re not familiar with how margin accounts work, you can read this other post first. We’ve already seen how a margin account is similar to getting a mortgage or a home equity loan (HELOC.) Today we’ll discuss margin loans and how to avoid a margin call. A conventional mortgage requires a 20% down payment which means the bank… Read More »
How Margin Accounts Work A reader asked me awhile ago about my margin account. As you know, I like to use leverage. So when I found out I could own stocks without actually paying for the full amount, I began to think about the possibilities, and opened up a margin account through my discount broker. I simply made… Read More »