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Buy Sell Why: 2022. Now, 2023.

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  • @yogibearbull : I paid fee of $6 for 26 week t bill purchase @ Schwab. Type of purchase stated margin , where as recent purchase of a CD stated cash.
    I had a short text chat with rep & they couldn't figure out the margin (TOP) as account had a few K left in it.
    Do you have an inkling as to why this T bill purchase was stated as margin purchase ?

    Thanks yogi, Derf
  • edited September 2022
    Hi sir Derf -not sure about ust bonds but Corp bonds usually 5 or 10 bucks transactions fee without margin fees per 5k 10k I think w vanguard or schwab (margin fees usually calculate at end of month)

    For us they put it the final product/amounts after closure into margin acct to close the deals (before settlement date) unless you have more cash in account than the actual bonds + commissions + forcasted partial divs paid before actual divs date

    From vanguard***
    A separate commission is charged for each security bought or sold. Orders that execute over multiple days are charged separate commissions. In addition, a separate commission is charged for each order placed for the same security on the same side of the market (buying or selling) on the same day. Orders that are changed by the client and executed in multiple trades on the same day are charged separate commissions. These commission and fee schedules are subject to change.***
  • Typically a 'margin' purchase occurs when you don't have enough available ready cash in your brokerage account to make the purchase. Did you?

    Buying on Margin
  • This happens when you sold some stock/ETF but the cash isn't available until T+2. The position screen may show the credit immediately but the amount isn't really available yet (and in your case, on the morning of the day of T-Bill auction).

    A foolproof way is to check the Balance screen and check the amount "available to withdraw" - that is the true cash available. On the other hand, "cash available to trade" can be a bit vague as it may or may not involve margin. Fido has a line for "cash available to trade without margin impact".

    I have gotten burned in this at both Fido and Schwab as this T+2 settlement detail can be easily overlooked on active market days. I am surprised that Schwab rep couldn't explain this.
  • This happens when you sold some stock/ETF but the cash isn't available until T+2. The position screen may show the credit immediately but the amount isn't really available yet (and in your case, on the morning of the day of T-Bill auction).

    A foolproof way is to check the Balance screen and check the amount "available to withdraw" - that is the true cash available. On the other hand, "cash available to trade" can be a bit vague as it may or may not involve margin. Fido has a line for "cash available to trade without margin impact".

    I have gotten burned in this at both Fido and Schwab as this T+2 settlement detail can be easily overlooked on active market days. I am surprised that Schwab rep couldn't explain this.

    Just had this issue at Schwab. They removed the margin charge. They REALLY need to be clearer on what available balance means in this context.
  • Not the answer in my case as both ATW & ATT show the same amount. @wxman123 : Could you inform me as to when this margin charge showed up ? I see $6 fee, that's all.
    Also T+2 didn't take place.
  • edited September 2022
    Talking about margin
    ML Worst everyone so confused
    Even my advisor ML could not figure out how much I owe in my margin acct, reps at ML are worthless only want you to enroll and buy their recommended funds
  • Derf said:

    Not the answer in my case as both ATW & ATT show the same amount. @wxman123 : Could you inform me as to when this margin charge showed up ? I see $6 fee, that's all.
    Also T+2 didn't take place.

    Derf said:

    Not the answer in my case as both ATW & ATT show the same amount. @wxman123 : Could you inform me as to when this margin charge showed up ? I see $6 fee, that's all.
    Also T+2 didn't take place.

    Basically the margin was caused by selling an etf and buying a mutual fund (or vice versa, don't recall) and the clearing time for each was different. I saw the margin charge in a quicken update a few days later.
  • @wxman123 : thanks for reply. I checked account last night & saw, or so it appears, margin was removed. Heck I don't even have a margin account or agreement with Schwab.
  • Yesterday I sold BAC and JPM, and will be buying either BX or MS. I also sold RPMGX (tax loss) and will be buying FSMEX. Problem is, I'm just not sure WHEN I'll be making those purchases. I think we're in for a really bumpy ride so cash is good.
  • edited September 2022
    Buying. (A bit of this and a bit of that … )
  • edited September 2022
    Friends loaded heavily after uncle Powell spoke

    I added little tsla asml spy
    No more cash

    Sold couple bonds positions
  • edited September 2022
    Small buys of ICLN and TAN, put in orders for 13 wk and 26 wk T-bills for Monday's auction. Conservative port = 10% risk assets, 30% hold-to-maturity short maturity T's and business promissory notes, 60% cash (FZDXX 2.30%, SPAXX 2.01%).
  • @AndyJ ; It seems you have a good plan ! +1
  • Hi @AndyJ
    As FZDXX isn't a default fund for a core cash account at Fidelity, and assuming your current core cash account is SPAXX; you used monies from SPAXX to purchase FZDXX, yes? I will presume when you choose to move monies from FZDXX in the future, to purchase an equity investment(s), the transaction would not be different as if the purchase came from SPAXX, with the EXCEPTION; that FZDXX must maintain the minimum $100,000 balance. Appears that Fidelity may close the FZDXX position if the minimum balance is not held. Am I correct with this assumption?
    TAN (solar) is holding quite well with consideration of the massive trampling taking place in the markets. We will maintain our position with this, too.
    Thank you.
    Remain curious,
    Catch
  • coffee tastes good this morning. i'm sure my portfolio won't. investing when there's blood in the streets requires little round body parts made of BRASS.
  • @Catch, my understanding is the same as yours.
  • edited September 2022
    I have FZDXX. It dips below $100k when Fido withdraws funds to settle my other (buy) trades. I rebuy into FZDXX even when the balance is below the initial minimum of $100k.
  • @BaluBalu: Good, thanks. That makes it even more user friendly than I thought.
  • Hitched up my big boy pants yesterday and…pecked at VTI, VIG, VWIAX, VPU, TAN, QCLN.
  • Reduced PAVE. Added to COWZ and REMIX.
  • All treasury yields went up after the Fed’s rate hike. Just put in an order for 26 week treasury for Monday’s auction.
  • edited September 2022
    Good move for short-term cash.
    In my opinion, the 26-week T-Bill is currently in the "sweet spot" of the yield curve.
    Select rates from the Dept. of Treasury website for 09/23:

    1 mo. - 2.67%
    3 mo. - 3.24%
    6 mo. - 3.85%
    1 yr. - 4.15%
    2 yr. - 4.20%
    3 yr. - 4.21%
    5 yr. - 3.96%
    10 yr. - 3.69%
  • edited September 2022
    That is for sure. It is a good way to build a ladder.
    https://tipswatch.com/2022/09/21/short-term-treasurys-even-more-attractive-now/

    To keep up with this inflation, I will pick up more 5 yr TIPs when the auction comes, October 13, 2022.
  • I added to RQI which was down 5.5% today...a solid fund with an 8% dividend at the current price and an 8% discount.
  • edited September 2022
    Friends loaded soxl Ford rivn tsla docu hkd labu today (swing trades)

    I am still watching sidelines... Place couple leap calls amsl spy amd today
  • PRESSmUP said:

    I added to RQI which was down 5.5% today...a solid fund with an 8% dividend at the current price and an 8% discount.

    Might be just the thing to do, right about now. My PSTL is getting whacked, too.
  • Crash said:

    PRESSmUP said:

    I added to RQI which was down 5.5% today...a solid fund with an 8% dividend at the current price and an 8% discount.

    Might be just the thing to do, right about now. My PSTL is getting whacked, too.
    The markets seem pretty squirrelly though…baby steps may be called for. As with PSTL, the key is looking beyond the current turmoil.
  • @PressmUp. Great minds think alike, eh?
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