Trading 101: What is a Margin Account?

Trading 101: What is a Margin Account? There are two main stock trading account types: cash account and margin account. The one that most new traders are unsure of is the margin account. In this video I will talk about what a margin account is and how it works, particularly in regards to leverage money. Free Guide - The 5 Tools I Use To Find Stocks To Trade: https://claytrader.com/lp/Free-Guide-Trading-Tools/?utm_source=social&utm_medium=youtube&utm_campaign=resource%20guide Enjoy this Free Content? I'm confident you'd enjoy my premium training courses then: https://claytrader.com/training/ Hear real life trading journeys from "normal" people: The Stock Trading Reality Podcast - https://claytrader.com/podcast/

Comments

1. how about shorting with cash account? Is it true one can only short sell using margin acc?
2. Thank you sir! This video really helped me understand the concept of a Margin A/c. I'm a student and was looking forward to start off with trading. Cash A/c sounds suitable for me. Will use my savings for that.
3. Great video cleared alot up for me
4. Wonderful job. I feel like I am taking a real class! That's what I am looking for. Thanks Clay.
5. Hello clay, great video. Couple of questions though: If i have a cash account, with let's say a 100$ for simplicity sake. What if I buy a 100 shares at 1$ and end up having to sell those at 11$, so that's a 1000$ loss that my 100$ account cannot cover.. what happens then?
   Also while on the subject, in a previous video, you mentioned that in order to "short", you NEED to have a margin account. Why isn't it possible with a cash account ?
   
   Thanks a lot!
6. Dry sponge soaked in gasoline. Don't smoke while you trade. Don't put your ashtray next to your sponge.
7. What does it take to open a margin account my credit is not that good and i have $500 to start trading with
8. Finally i get it. Thanks men!!!
9. thank you
10. Clay,
    
    First and foremost thank you for your educational videos. They have helped me tremendously in my trading strategies and my account balance has increased approximately 125% since I started about a month ago.
    
    I have been trading with a cash account, under the 25k mark and I'm curious how a margin account affects day trading. I'm currently subject to the pattern day trading rules and have been making one or two trades, every three days, once my funds clear. I've almost reached the 25k min and once I do, I know those rules won't apply to me anymore. However, there is still the 3 day turn around time to clear funds. Is this still an issue with a margin account? Thanks for any insight on this topic!
11. Thank you for these videos. They are really breaking things down for me...
    
    Could the margin account be a way to get around the PDT law? For instance, if I had a margin account with 4:1 ratio, and i had $6250, my buying power would be $25,000. Does that now allow me to be a pattern day trader?
12. Clay as far as i know PDT rule doesn't apply on cash accounts. Is that true ? Can i open a think or swim cash account and have as many trades as i want?
13. Finall after sorting thru channels... I finally found a good teacher on youtube! Subbed :-D do keep up the great work & thanks for your clear breakdown of of info
14. Hi ClayTrader
    I have seen some of your videos and it got me back into wanting to trade. I was wondering if it is worth it to start trading when I only have 100$ or should I save up for more? If I can trade with only small amounts, where can I do so?
    Thanks!
15. Where can i TRAIN to get start trading?
16. also, and not mentioned in this video, perhaps another. the reason one desires a margin account over a plain cash account is that margin is required to short stocks. is that true?
17. Clay, thanks for the breakdown of margin. it is true that if I trade positions valued at $5,000 (my initial cash deposit), or less, I am NEVER borrowing any money from the broker? Hence I am NOT accusing interest on the margin available to me? I really do not desire to borrow money.
18. Another useful video. Thanks.
19. "If you're running around like a moron" hahaha literally had me laughing out loud!
20. what's your thought on markets.com are they good, who is your broker ?