Help me with margin

[J_V]

I am trading a small percentage of my portfolio on margin. I assume since I am borrowing money, I am paying interest on that money. But since I have a 0 cash balance in my online account, how do they take it? I never see any deductions for that interest. At what point do they take their percentage?

[ubiestmea]

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I am trading a small percentage of my portfolio on margin. I assume since I am borrowing money, I am paying interest on that money. But since I have a 0 cash balance in my online account, how do they take it? I never see any deductions for that interest. At what point do they take their percentage?

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It’s always a bad idea to do something financially that you don’t completely understand, call your broker and get a detailed explanation of exactly what their margin policy is and how they implement it.

[ImBetterAtGolf]

You are borrowing money and they will charge you interest at some rate (which you should know). You have no cash because you are net borrowing. The interest will show up as an increase in the balance that you owe the broker.

[pig4bill]

It's reflected in your balance as a reduction in buying power. Most brokers charge you monthly.