What Every Trader Should Know About Margin | Charles Schwab

That feel when Etrade changes your margin requirements mid trade and then sells 60% of your portfolio at the low of the day without notice and you’re just sitting there like wow dude I wouldn’t have held for this week if I knew they would sell for a loss at that point. I already bought the shares..?

That feel when Etrade changes your margin requirements mid trade and then sells 60% of your portfolio at the low of the day without notice and you’re just sitting there like wow dude I wouldn’t have held for this week if I knew they would sell for a loss at that point. I already bought the shares..? submitted by Nonaluuluu to wallstreetbets [link] [comments]

RIP DDTG

RIP DDTG submitted by llamaspajamaz to barstoolsports [link] [comments]

Why does the SEC hate the 99%?

This is a bit of a vent but I find it kind of hard to understand. I like many others used this pandemic as a chance to open an eTrade account and get into stock trading. Several weeks ago I made the mistake of upgrading to a margin account because I thought it will let me short stock, but found out I can't do any short selling until the balance exceeds $2,000. Since I don't want to take a lot of risk, while I am approaching that figure I don't have that much in my account right now despite the 40% gains as I didn't invest that much.

Here's what I don't understand.

The SEC is about keeping people "honest", not insider trading, and keeping the markets legal, from what I understand. So why does the pattern day trader rule only apply to those with less than $25,000 in their portfolios? I mean this is obviously targeted at poor people.
submitted by f00dl3 to stocks [link] [comments]

When do expired options clear?

I'm using the paper trading to learn about writing puts on etrade. Paper trading seems to be the same interface as power trading. I sold to open a couple of puts that expired on 7/31/20 OTM. I still see these in my positions tab, and they're impacting my cash and margin buying power.
How can I close them out? When I click "close" for them it says "Next expiry not available", which is true, but I don't see a way to get rid of these expired options. Will they just go away when the market opens on Monday?
submitted by akitkatattack to etrade [link] [comments]

How to Grow A Small Trading Account📈

Wrote a lil blog with some tips to help grow a small trading account! Here it is:
Almost every trader that is brand new to the market starts off by trading a small account, as they should. After all, why dive into the high-risk world of day trading with all of your hard-earned life savings at risk? It's best to start small and slowly grow your account, or even add more to your account in the future when you're more confident in your trading. However, most people dream of starting a small account of a few hundred or a few thousand dollars and growing it one trade at a time, which is obviously easier said than done. In this post I'll be sharing some tips and tricks that can help you grow a small trading account. Most of these I even used myself when I first got trading and I believe they played a big role in helping me grow my account.
Before getting to the good stuff, you may be wondering why it's actually more difficult to trade a small account than a large account. The main reason for this is because of the Pattern Day Trader (PDT)Rule. The PDT rule limits U.S. based traders with less than $25,000 in their trading account to only 3 day trades per 5 business days. Further limitations are placed on accounts that break the PDT rule by placing 4 or more day trades within a 5 business day period.
The PDT rule was put into place by the SEC with the hopes that it would protect new traders from trading too frequently and quickly losing their money. In reality, a lot of time what it actually does is forces traders to hold risky positions overnight that they would rather exit the same day, due to them not having anymore day trades available.
There are a few ways that new traders can, in a way, get around the PDT rule to be able to place more day trades. First, they can look into opening an offshore trading account. Now, I know it sounds a bit sketchy... but opening an account with a reputable brokerage based outside of the U.S. is a legitimate way to get around the PDT rule. The reason this works is because the PDT rule is for U.S. traders and if your money is in an account outside of the U.S, you're free to trade as much as you'd like!
Another way to increase your number of day trades, without opening an offshore account, is to have multiple brokerage accounts. For example, if you have $2,000 to start trading, you could open 2 separate brokerage accounts with $1,000 in each and will then have 6 total day trades per 5 business days (3 with each account). If you're starting with a larger amount of money, but still under the $25,000 PDT minimum, you can even open more than 2 trading account if you'd like and will have 3 day trades in each one!
One issue you may run into using this method is that you can only have one margin account per brokerage. Margin accounts are required if you're someone that short sells or plans on doing some short-selling. Because of this, you should have separate accounts with entirely different brokerages. For example, one account with Etrade and one with TD Ameritrade.
Aside from the broker that you're using to do your trading, there are of course actual trading techniques and strategies that you can do with you small account that will give you better chances of growing over the $25,000 PDT minimum too. One of those strategies is to simply learn swing trading. You'll still be able to use your 3 day trades per 5 business days, but if you really want to put your money to work while your account is under the PDT rule, being able to profitably swing trade is an incredible way to grow your small trading account.
A swing trade is just a position held anywhere from a few days to a few weeks. This is different from day trading, which is when you exit your position the same day that it was opened. The nice thing about swing trading is that there are no limitations on how many swing trades you can place, even with a small account. One great way to swing trade is to follow stocks that already have momentum. By doing this, you're following the stock's trend rather than trying to fight it! "Follow the trend. The trend is your friend." - Jesse Livermore
You can use a screener like the one here on finviz.com to find stocks that already have some upward momentum. To do this you may include "Performance +10%" over the past week while screening. This will give you a list of that have gone up at least 10% in the past week. Of course, you'll want to narrow it down further but this is a good way to at least start searching for some stock with some upward momentum that you may be able to get in on.
The next tip for growing a small trading account is one that should be used regardless of the trading type that you're doing, whether it's day trading or swing trading. Risk proportionally to your account size. This means that, for example, if you would be risking $250 to $500 with a $25,000 account... you should only be risking $25 to $50 with a $2,500 account. It's important to know your max risk before entering a trade and using the proper position size based on your risk.
Doing this will help you prevent any major losses and save you from blowing your entire trading account with just one bad trade!
Hopefully instead of having to worry about blowing your trading account, you'll have to worry about my next tip. Don't remove your profits from your trading account. When you first start making some money it can be very tempting to move those profits straight into you bank account, but you'll never grow your trading account this way. In my opinion, you should maybe give yourself some milestone payments along the way, but keep a majority of your profits in your account until it's grown to your goal account size. By "milestone payments," I mean maybe withdraw some profits once you grow your account to $10,000 or $15,000, rather than randomly after you've made any profits at all.
Hope you found this helpful!
submitted by mtmtrader to pennystocks [link] [comments]

Just left Robinhood to ETrade-- Think I opened a Cash account. Should I change it to a margin account?

I'm relatively new to understanding what margin is, but I notice ETrade doesn't want me trading with $ I've made from other stocks until the money settles. Would I be best served with a margin account then?
Also, are the rates similar. I never noticed a rate with Robinhood. Will I notice a significant one with ETrade? Confused.
Thanks!
submitted by Aklein351 to RobinHood [link] [comments]

Which broker would you pick today?

So I've been using eTrade for several years now along with Fidelity for my trading. Mostly eTrade for my daytrading activity. Playing with around $30k in capital and using margin. I'm not really committed to either. I'll keep my long-term 401k/HSA/IRA investments sitting at Fidelity (but that is not actively traded) but want to consolidate by active trading and daytrading so now is a good time for me to find a new broker.
I was tempted to just go with TDA and the ThinkOrSwim platform. But then someone suggested I look at Interactive Brokers and their TWS platform and another review suggested TradeStation.
My question is if you were starting from scratch - meaning you didn't already know a platform deep - which would you want to start with today?
My hesitation with TDA/ThinkOrSwim is that I've seen multiple folks, including on this subreddit, complaining about execution time. Since I do daytrading that does matter - although it'll probably still be better than eTrade.
submitted by goatofeverything to Daytrading [link] [comments]

Need help understanding some trading terms

I use eTrade and have always been a long share holder. I have made close to 50% gains in some large cap stocks but recently started playing around with penny stocks. I only invest what I can afford to lose, and so far, I am ahead of the losses. However, there have been a lot of learning experiences on the way. I never realized how much I need to learn about trading until this.
First mistake was using e-Trade. Period.
Second mistake was daytrading 4 stocks within 5 days and then getting flagged as a day trader and now have a PDT placed on my account for 90 days. I’m ashamed to say I didn’t even know there was a limit. ETrade has NOTHING that warns you about this and you have to keep track of day trades yourself. Sounds easier than it is.
Here are some questions I have now that the restrictions were placed on my account.
  1. As of now, I am able to buy and sell stocks, even on margin. I just can’t day trade. I am well ahead on gains, so does this mean my securities are safe and won’t be liquidated suddenly? The minimum equity margin call scares me, although it just says not to day trade or I can put more money in my account if I want to continue daytrading. As long as I don’t have huge losses in the future, are my stock positions safe?
  2. I noticed there is a number under “margin excess”. From what I understand, you want to see at least $2000 here. Mine is $3,480. Is this a good thing?
  3. Besides each of my positions, I see a column labeled “Margin Requirement” and one labeled “Concentration” with varying percentages for each stock I hold. I’m assuming the requirement is the percentage that goes towards the margin debt if I sell. Is that accurate? What is concentration?
I REALLY appreciate your help with this! I tried googling but can’t find simplified, direct answers.
submitted by ADHDoll to pennystocks [link] [comments]

Are there any Platforms that treat SPAC shares as Marginable Securities?

I'm on an eTrade margin account, I was going to leverage some money on CCXX shares, but it turns out it's considered a "non-marginable" security.
Are there any Platforms that treat SPAC shares (or even better, SPAC units) as Marginable Securities, so you can leverage your money on them with little downside?
submitted by karmalizing to SPACs [link] [comments]

Margin Debit on my Portfolio

I recently sold a few shares then proceeded to buy shares on e-trade, and now my portfolio shows a Margin Debit of -$521...I have more than $700 available for withdrawal and plenty of funds for margin purchasing power? Why is this margin debit on my portfolio? If I owe any money why doesnt etrade take it from my cash balance?
submitted by Slump_T to etrade [link] [comments]

Limits on buying stocks/ETFs on etrade?

Would someone familiar with etrade rules please check if I'm understanding the rules correctly?
I read this on the website:
"Per FINRA, the term pattern day trader (PDT) refers to any customer who executes four or more day trades within a rolling five business-day period in a margin account."
As I understand it, this PDT restriction is around day trades, but not all trades — does that sound right? I've been buying ETFs, at times more than once a day, but I haven't done any sales — am I at risk of hitting some limit on number of times I can buy in a day?
I'm searching the etrade docs, but still haven't found the answer to the question. Thanks for any info!
submitted by wasnt_in_the_hot_tub to etrade [link] [comments]

How to Grow a Small Trading Account📈

Wrote a lil blog with some tips to help grow a small trading account! Here it is:
Almost every trader that is brand new to the market starts off by trading a small account, as they should. After all, why dive into the high-risk world of day trading with all of your hard-earned life savings at risk? It's best to start small and slowly grow your account, or even add more to your account in the future when you're more confident in your trading. However, most people dream of starting a small account of a few hundred or a few thousand dollars and growing it one trade at a time, which is obviously easier said than done. In this post I'll be sharing some tips and tricks that can help you grow a small trading account. Most of these I even used myself when I first got trading and I believe they played a big role in helping me grow my account.
Before getting to the good stuff, you may be wondering why it's actually more difficult to trade a small account than a large account. The main reason for this is because of the Pattern Day Trader (PDT)Rule. The PDT rule limits U.S. based traders with less than $25,000 in their trading account to only 3 day trades per 5 business days. Further limitations are placed on accounts that break the PDT rule by placing 4 or more day trades within a 5 business day period.
The PDT rule was put into place by the SEC with the hopes that it would protect new traders from trading too frequently and quickly losing their money. In reality, a lot of time what it actually does is forces traders to hold risky positions overnight that they would rather exit the same day, due to them not having anymore day trades available.
There are a few ways that new traders can, in a way, get around the PDT rule to be able to place more day trades. First, they can look into opening an offshore trading account. Now, I know it sounds a bit sketchy... but opening an account with a reputable brokerage based outside of the U.S. is a legitimate way to get around the PDT rule. The reason this works is because the PDT rule is for U.S. traders and if your money is in an account outside of the U.S, you're free to trade as much as you'd like!
Another way to increase your number of day trades, without opening an offshore account, is to have multiple brokerage accounts. For example, if you have $2,000 to start trading, you could open 2 separate brokerage accounts with $1,000 in each and will then have 6 total day trades per 5 business days (3 with each account). If you're starting with a larger amount of money, but still under the $25,000 PDT minimum, you can even open more than 2 trading account if you'd like and will have 3 day trades in each one!
One issue you may run into using this method is that you can only have one margin account per brokerage. Margin accounts are required if you're someone that short sells or plans on doing some short-selling. Because of this, you should have separate accounts with entirely different brokerages. For example, one account with Etrade and one with TD Ameritrade.
Aside from the broker that you're using to do your trading, there are of course actual trading techniques and strategies that you can do with you small account that will give you better chances of growing over the $25,000 PDT minimum too. One of those strategies is to simply learn swing trading. You'll still be able to use your 3 day trades per 5 business days, but if you really want to put your money to work while your account is under the PDT rule, being able to profitably swing trade is an incredible way to grow your small trading account.
A swing trade is just a position held anywhere from a few days to a few weeks. This is different from day trading, which is when you exit your position the same day that it was opened. The nice thing about swing trading is that there are no limitations on how many swing trades you can place, even with a small account. One great way to swing trade is to follow stocks that already have momentum. By doing this, you're following the stock's trend rather than trying to fight it! "Follow the trend. The trend is your friend." - Jesse Livermore
You can use a screener like the one here on finviz.com to find stocks that already have some upward momentum. To do this you may include "Performance +10%" over the past week while screening. This will give you a list of that have gone up at least 10% in the past week. Of course, you'll want to narrow it down further but this is a good way to at least start searching for some stock with some upward momentum that you may be able to get in on.
The next tip for growing a small trading account is one that should be used regardless of the trading type that you're doing, whether it's day trading or swing trading. Risk proportionally to your account size. This means that, for example, if you would be risking $250 to $500 with a $25,000 account... you should only be risking $25 to $50 with a $2,500 account. It's important to know your max risk before entering a trade and using the proper position size based on your risk.
Doing this will help you prevent any major losses and save you from blowing your entire trading account with just one bad trade!
Hopefully instead of having to worry about blowing your trading account, you'll have to worry about my next tip. Don't remove your profits from your trading account. When you first start making some money it can be very tempting to move those profits straight into you bank account, but you'll never grow your trading account this way. In my opinion, you should maybe give yourself some milestone payments along the way, but keep a majority of your profits in your account until it's grown to your goal account size. By "milestone payments," I mean maybe withdraw some profits once you grow your account to $10,000 or $15,000, rather than randomly after you've made any profits at all.
Hope you found this helpful!
submitted by mtmtrader to RobinHoodPennyStocks [link] [comments]

Crypto-Powered - The Most Promising Use-Cases of Decentralized Finance (DeFi)

Crypto-Powered - The Most Promising Use-Cases of Decentralized Finance (DeFi)
A whirlwind tour of Defi, paying close attention to protocols that we’re leveraging at Genesis Block.
https://reddit.com/link/hrrt21/video/cvjh5rrh12b51/player
This is the third post of Crypto-Powered — a new series that examines what it means for Genesis Block to be a digital bank that’s powered by crypto, blockchain, and decentralized protocols.
Last week we explored how building on legacy finance is a fool’s errand. The future of money belongs to those who build with crypto and blockchain at their core. We also started down the crypto rabbit hole, introducing Bitcoin, Ethereum, and DeFi (decentralized finance). That post is required reading if you hope to glean any value from the rest of this series.
97% of all activity on Ethereum in the last quarter has been DeFi-related. The total value sitting inside DeFi protocols is roughly $2B — double what it was a month ago. The explosive growth cannot be ignored. All signs suggest that Ethereum & DeFi are a Match Made in Heaven, and both on their way to finding strong product/market fit.
So in this post, we’re doing a whirlwind tour of DeFi. We look at specific examples and use-cases already in the wild and seeing strong growth. And we pay close attention to protocols that Genesis Block is integrating with. Alright, let’s dive in.

Stablecoins

Stablecoins are exactly what they sound like: cryptocurrencies that are stable. They are not meant to be volatile (like Bitcoin). These assets attempt to peg their price to some external reference (eg. USD or Gold). A non-volatile crypto asset can be incredibly useful for things like merchant payments, cross-border transfers, or storing wealth — becoming your own bank but without the stress of constant price volatility.
There are major governments and central banks that are experimenting with or soon launching their own stablecoins like China with their digital yuan and the US Federal Reserve with their digital dollar. There are also major corporations working in this area like JP Morgan with their JPM Coin, and of course Facebook with their Libra Project.
Stablecoin activity has grown 800% in the last year, with $290B of transaction volume (funds moving on-chain).
The most popular USD-pegged stablecoins include:
  1. Tether ($10B): It’s especially popular in Asia. It’s backed by USD in a bank account. But given their lack of transparency and past controversies, they generally aren’t trusted as much in the West.
  2. USDC ($1B): This is the most reputable USD-backed stablecoin, at least in the West. It was created by Coinbase & Circle, both well-regarded crypto companies. They’ve been very open and transparent with their audits and bank records.
  3. DAI ($189M): This is backed by other crypto assets — not USD in a bank account. This was arguably the first true DeFi protocol. The big benefit is that it’s more decentralized — it’s not controlled by any single organization. The downside is that the assets backing it can be volatile crypto assets (though it has mechanisms in place to mitigate that risk).
Other notable USD-backed stablecoins include PAX, TrueUSD, Binance USD, and Gemini Dollar.
tablecoins are playing an increasingly important role in the world of DeFi. In a way, they serve as common pipes & bridges between the various protocols.
https://preview.redd.it/v9ki2qro12b51.png?width=700&format=png&auto=webp&s=dbf591b122fc4b3d83b381389145b88e2505b51d

Lending & Borrowing

Three of the top five DeFi protocols relate to lending & borrowing. These popular lending protocols look very similar to traditional money markets. Users who want to earn interest/yield can deposit (lend) their funds into a pool of liquidity. Because it behaves similarly to traditional money markets, their funds are not locked, they can withdraw at any time. It’s highly liquid.
Borrowers can tap into this pool of liquidity and take out loans. Interest rates depend on the utilization rate of the pool — how much of the deposits in the pool have already been borrowed. Supply & demand. Thus, interest rates are variable and borrowers can pay their loans back at any time.
So, who decides how much a borrower can take? What’s the process like? Are there credit checks? How is credit-worthiness determined?
These protocols are decentralized, borderless, permissionless. The people participating in these markets are from all over the world. There is no simple way to verify identity or check credit history. So none of that happens.
Credit-worthiness is determined simply by how much crypto collateral the borrower puts into the protocol. For example, if a user wants to borrow $5k of USDC, then they’ll need to deposit $10k of BTC or ETH. The exact amount of collateral depends on the rules of the protocol — usually the more liquid the collateral asset, the more borrowing power the user can receive.
The most prominent lending protocols include Compound, Aave, Maker, and Atomic Loans. Recently, Compound has seen meteoric growth with the introduction of their COMP token — a token used to incentivize and reward participants of the protocol. There’s almost $1B in outstanding debt in the Compound protocol. Mainframe is also working on an exciting protocol in this area and the latest iteration of their white paper should be coming out soon.
There is very little economic risk to these protocols because all loans are overcollateralized.
I repeat, all loans are overcollateralized. If the value of the collateral depreciates significantly due to price volatility, there are sophisticated liquidation systems to ensure the loan always gets paid back.
https://preview.redd.it/rru5fykv12b51.png?width=700&format=png&auto=webp&s=620679dd84fca098a042051c7e7e1697be8dd259

Investments

Buying, selling, and trading crypto assets is certainly one form of investing (though not for the faint of heart). But there are now DeFi protocols to facilitate making and managing traditional-style investments.
Through DeFi, you can invest in Gold. You can invest in stocks like Amazon and Apple. You can short Tesla. You can access the S&P 500. This is done through crypto-based synthetics — which gives users exposure to assets without needing to hold or own the underlying asset. This is all possible with protocols like UMA, Synthetix, or Market protocol.
Maybe your style of investing is more passive. With PoolTogether , you can participate in a no-loss lottery.
Maybe you’re an advanced trader and want to trade options or futures. You can do that with DeFi protocols like Convexity, Futureswap, and dYdX. Maybe you live on the wild side and trade on margin or leverage, you can do that with protocols like Fulcrum, Nuo, and DDEX. Or maybe you’re a degenerate gambler and want to bet against Trump in the upcoming election, you can do that on Augur.
And there are plenty of DeFi protocols to help with crypto investing. You could use Set Protocol if you need automated trading strategies. You could use Melonport if you’re an asset manager. You could use Balancer to automatically rebalance your portfolio.
With as little as $1, people all over the world can have access to the same investment opportunities and tools that used to be reserved for only the wealthy, or those lucky enough to be born in the right country.
You can start to imagine how services like Etrade, TD Ameritrade, Schwab, and even Robinhood could be massively disrupted by a crypto-native company that builds with these types of protocols at their foundation.
https://preview.redd.it/agco8msx12b51.png?width=700&format=png&auto=webp&s=3bbb595f9ecc84758d276dbf82bc5ddd9e329ff8

Insurance

As mentioned in our previous post, there are near-infinite applications one can build on Ethereum. As a result, sometimes the code doesn’t work as expected. Bugs get through, it breaks. We’re still early in our industry. The tools, frameworks, and best practices are all still being established. Things can go wrong.
Sometimes the application just gets in a weird or bad state where funds can’t be recovered — like with what happened with Parity where $280M got frozen (yes, I lost some money in that). Sometimes, there are hackers who discover a vulnerability in the code and maliciously steal funds — like how dForce lost $25M a few months ago, or how The DAO lost $50M a few years ago. And sometimes the system works as designed, but the economic model behind it is flawed, so a clever user takes advantage of the system— like what recently happened with Balancer where they lost $500k.
There are a lot of risks when interacting with smart contracts and decentralized applications — especially for ones that haven’t stood the test of time. This is why insurance is such an important development in DeFi.
Insurance will be an essential component in helping this technology reach the masses.
Two protocols that are leading the way on DeFi insurance are Nexus Mutual and Opyn. Though they are both still just getting started, many people are already using them. And we’re excited to start working with them at Genesis Block.
https://preview.redd.it/wf1xvq3z12b51.png?width=700&format=png&auto=webp&s=70db1e9587f57d0c470a4f9f4523c216929e1876

Exchanges & Liquidity

Decentralized Exchanges (DEX) were one of the first and most developed categories in DeFi. A DEX allows a user to easily exchange one crypto asset for another crypto asset — but without needing to sign up for an account, verify identity, etc. It’s all via decentralized protocols.
Within the first 5 months of 2020, the top 7 DEX already achieved the 2019 trading volume. That was $2.5B. DeFi is fueling a lot of this growth.
https://preview.redd.it/1dwvq4e022b51.png?width=700&format=png&auto=webp&s=97a3d756f60239cd147031eb95fc2a981db55943
There are many different flavors of DEX. Some of the early ones included 0x, IDEX, and EtherDelta — all of which had a traditional order book model where buyers are matched with sellers.
Another flavor is the pooled liquidity approach where the price is determined algorithmically based on how much liquidity there is and how much the user wants to buy. This is known as an AMM (Automated Market Maker) — Uniswap and Bancor were early leaders here. Though lately, Balancer has seen incredible growth due mostly to their strong incentives for participation — similar to Compound.
There are some DEXs that are more specialized — for example, Curve and mStable focus mostly only stablecoins. Because of the proliferation of these decentralized exchanges, there are now aggregators that combine and connect the liquidity of many sources. Those include Kyber, Totle, 1Inch, and Dex.ag.
These decentralized exchanges are becoming more and more connected to DeFi because they provide an opportunity for yield and earning interest.
Users can earn passive income by supplying liquidity to these markets. It usually comes in the form of sharing transaction fee revenue (Uniswap) or token rewards (Balancer).
https://preview.redd.it/wrug6lg222b51.png?width=700&format=png&auto=webp&s=9c47a3f2e01426ca87d84b92c1e914db39ff773f

Payments

As it relates to making payments, much of the world is still stuck on plastic cards. We’re grateful to partner with Visa and launch the Genesis Block debit card… but we still don’t believe that's the future of payments. We see that as an important bridge between the past (legacy finance) and the future (crypto).
Our first post in this series shared more on why legacy finance is broken. We talked about the countless unnecessary middle-men on every card swipe (merchant, acquiring bank, processor, card network, issuing bank). We talked about the slow settlement times.
The future of payments will be much better. Yes, it’ll be from a mobile phone and the user experience will be similar to ApplePay (NFC) or WePay (QR Code).
But more importantly, the underlying assets being moved/exchanged will all be crypto — digital, permissionless, and open source.
Someone making a payment at the grocery store check-out line will be able to open up Genesis Block, use contactless tech or scan a QR code, and instantly pay for their goods. All using crypto. Likely a stablecoin. Settlement will be instant. All the middlemen getting their pound of flesh will be disintermediated. The merchant can make more and the user can spend less. Blockchain FTW!
Now let’s talk about a few projects working in this area. The xDai Burner Wallet experience was incredible at the ETHDenver event a few years ago, but that speed came at the expense of full decentralization (can it be censored or shut down?). Of course, Facebook’s Libra wants to become the new standard for global payments, but many are afraid to give Facebook that much control (newsflash: it isn’t very decentralized).
Bitcoin is decentralized… but it’s slow and volatile. There are strong projects like Lightning Network (Zap example) that are still trying to make it happen. Projects like Connext and OmiseGo are trying to help bring payments to Ethereum. The Flexa project is leveraging the gift card rails, which is a nice hack to leverage existing pipes. And if ETH 2.0 is as fast as they say it will be, then the future of payments could just be a stablecoin like DAI (a token on Ethereum).
In a way, being able to spend crypto on daily expenses is the holy grail of use-cases. It’s still early. It hasn’t yet been solved. But once we achieve this, then we can ultimately and finally say goodbye to the legacy banking & finance world. Employees can be paid in crypto. Employees can spend in crypto. It changes everything.
Legacy finance is hanging on by a thread, and it’s this use-case that they are still clinging to. Once solved, DeFi domination will be complete.
https://preview.redd.it/svft1ce422b51.png?width=700&format=png&auto=webp&s=9a6afc9e9339a3fec29ee2ae743c07c3042ea4ce

Impact on Genesis Block

At Genesis Block, we’re excited to leverage these protocols and take this incredible technology to the world. Many of these protocols are already deeply integrated with our product. In fact, many are essential. The masses won’t know (or care about) what Tether, USDC, or DAI is. They think in dollars, euros, pounds and pesos. So while the user sees their local currency in the app, the underlying technology is all leveraging stablecoins. It’s all on “crypto rails.”
https://preview.redd.it/jajzttr622b51.png?width=700&format=png&auto=webp&s=fcf55cea1216a1d2fcc3bf327858b009965f9bf8
When users deposit assets into their Genesis Block account, they expect to earn interest. They expect that money to grow. We leverage many of these low-risk lending/exchange DeFi protocols. We lend into decentralized money markets like Compound — where all loans are overcollateralized. Or we supply liquidity to AMM exchanges like Balancer. This allows us to earn interest and generate yield for our depositors. We’re the experts so our users don’t need to be.
We haven’t yet integrated with any of the insurance or investment protocols — but we certainly plan on it. Our infrastructure is built with blockchain technology at the heart and our system is extensible — we’re ready to add assets and protocols when we feel they are ready, safe, secure, and stable. Many of these protocols are still in the experimental phase. It’s still early.
At Genesis Block we’re excited to continue to be at the frontlines of this incredible, innovative, technological revolution called DeFi.
---
None of these powerful DeFi protocols will be replacing Robinhood, SoFi, or Venmo anytime soon. They never will. They aren’t meant to! We’ve discussed this before, these are low-level protocols that need killer applications, like Genesis Block.
So now that we’ve gone a little deeper down the rabbit hole and we’ve done this whirlwind tour of DeFi, the natural next question is: why?
Why does any of it matter?
Most of these financial services that DeFi offers already exist in the real world. So why does it need to be on a blockchain? Why does it need to be decentralized? What new value is unlocked? Next post, we answer these important questions.
To look at more projects in DeFi, check out DeFi Prime, DeFi Pulse, or Consensys.
------
Other Ways to Consume Today's Episode:
Follow our social channels:https://genesisblock.com/follow/
Download the app. We're a digital bank that's powered by crypto:https://genesisblock.com/download
submitted by mickhagen to genesisblockhq [link] [comments]

Got this message from etrade and it's kind of over my head.

(Az) "To effectively manage the risks associated with margin trading, E*TRADE periodically reviews and updates margin requirements.
The maintenance requirement for your holding below has increased. This may decrease your available purchasing power. It may also put your account at risk of a house call if your equity falls below the minimum requirement."
It said it went from 25 to 35%. Don't really know what that means.
It is a margin account but I don't do any trading on margin.
etrade hasn't been that helpful when I've asked them about things in the past so asking here, explanation appreciated thank you
submitted by EliteAlmondMilk to personalfinance [link] [comments]

Margin Equity, Balance, etc.

I am fairly new to penny stocks and definitely just dabbling with some money I made in gains. I use etrade and got flagged for day trading, but they removed the penalty since it was my first call in the 8 years I have used eTrade.
I have looked everywhere but I am having a hard time understanding the $25,000 balance part. Does this balance include margin, or do you need $25,000 of your own cash deposited to be able to freely day trade?
submitted by ADHDoll to pennystocks [link] [comments]

If You Smellllllll What Vince Is Cooking ($WWE Calls)

Sports are cancelled and it’s fucking brutal. ESports betting is exploding in popularity and people are even gambling on (and watching) Madden simulations. I thought I had seen peak degeneracy playing in underground NYC poker rooms and reading what you dirtbags post on this sub but betting on computer sport simulations takes the cake (then again, it's not that much more fake than this market). No one knows when live sports will come back now that Disney put their mouse cock on the table and forced Dana White to cancel UFC 249. And despite what Daddy Trump may tell you in his thus far incredibly successful attempts at feeding his leftover viagra to the stock market, it's looking like the only sweaty grunting dudes you're going to be seeing for the time being are in your bedroom.
Through the fog of godawful Big Bang Theory reruns and exciting free Pornhub premium, a hero emerges. As u/killlthenoise posted earlier, another fine demonstration of how this country functions took place Monday the WWE was granted essential business status in the state of Florida while, rather coincidentally, Linda McMahon spearheads one of the largest Trump super-PACs out there. I’m not here to bitch about the transparent shadiness here (tons of subreddits out there for that), I’m just trying to make some money so my cat isn’t seized by ETrade during a margin call. The WWE isn’t sports per se but it will scratch an itch that many people have as long as that itch isn't related to chlamydia. Fans, even the casual ones, will watch because barely anyone's releasing new content even tangentially related to live sports unless you're a fan of Nicuraguan soccer or Russian ping pong (these are legit the last two live sports my book has listed). Degens will watch because while mine doesn't, some sportsbooks are starting to take bets on WWE matches, especially since spoilers will be tough to come by with just a skeleton crew working these events. People are starved for some kind of live-ish entertainment and with no competition, it’s a once in a lifetime opportunity for them to attract some new eyeballs.
The WWE Network hasn't been the runaway success they expected when they launched it a few years ago but they're making 265 million dollars a year from NBC for airing Raw, 205 million per year from Fox for Smackdown and, incredibly, 50 million per year from Saudi Arabia for hosting a few shows there. Revenues are pretty much locked in besides gate which isn't a major part of their business model, competition is as low as it'll ever be and costs are plummeting. From today: "The Company's reductions of employee compensation and headcount result in an estimated monthly savings of $4 million along with cash flow improvement of $140 million primarily from the deferral in spending on the Company's new headquarters."
Let's touch on a few possible downsides. The XFL folded last week which is a shame because they were actually making some good strides this year and made gambling on games easier than ever (RIP NY Renegades, we hardly knew ya). The XFL is run by a separate company than WWE so it shouldn't affect the company. The overlap is just the founder and apparently Vinny Mac was prepared to take a 375 million dollar loss in the first three years of the league. Losses will still be painful for year one, possibly even worse than the ones you're experiencing on your John Holmes-esque portfolio of SPY puts, but not as bad as they would have been had the league been planning for year two right now, and that's not even considering the possibility they had insurance to the tits like Wimbledon did (they basically bought puts on themselves; wish there was a way for me to do that). Vinny offloading 15% of his stock a month ago initially concerned me but on closer inspection he did the same in 2018 when they were opening the XFL to free up some cash for his other venture; odds are he was doing the same here after they closed up shop. I have heard the possibility raised that they filed for bankruptcy so they could get some of that sweet freshly printed government money. Also doesn't hurt that Vince got a sweetheart deal to sell his stock, because of course he did, but he kinda still owns it now.
While most stocks have rebounded huge during this latest face-ripping rally, WWE stock is still trading around 1/3 of it's price a year ago when it was $99.25, and much of that drop was due to a January shakeup that saw them replace some of their top execs. I could go into technicals on the company and the stock but I know most of you are just skipping down to the bottom for a strike anyways so fuck it, let's make some cash...just make sure you declare it all so Irwyn R. Schyster doesn't come looking for you.
TL;DR - WWE 5/15 40c
And to our heroes at the SEC, if you're reading this - I have no idea what the hell I'm doing.
submitted by aryastark94 to wallstreetbets [link] [comments]

etrade special margin maintenance change

I just got a notification saying there was a special margin maintenance change on a stock in my portfolio on etrade. I was just wondering why i got this notification since i didn't buy any of the stock on margin and have never used margin yet since i am still new to trading and dont want to risk more than I have. Was this just a mass notification sent out to anyone who owned the stock with a margin account regardless if they bought it on margin or not?
submitted by austin020690 to stocks [link] [comments]

Growing a Small Trading Account📈

Wrote a lil blog with some tips to help grow a small trading account! Here it is:
Almost every trader that is brand new to the market starts off by trading a small account, as they should. After all, why dive into the high-risk world of day trading with all of your hard-earned life savings at risk? It's best to start small and slowly grow your account, or even add more to your account in the future when you're more confident in your trading. However, most people dream of starting a small account of a few hundred or a few thousand dollars and growing it one trade at a time, which is obviously easier said than done. In this post I'll be sharing some tips and tricks that can help you grow a small trading account. Most of these I even used myself when I first got trading and I believe they played a big role in helping me grow my account.
Before getting to the good stuff, you may be wondering why it's actually more difficult to trade a small account than a large account. The main reason for this is because of the Pattern Day Trader **(PDT)**Rule. The PDT rule limits U.S. based traders with less than $25,000 in their trading account to only 3 day trades per 5 business days. Further limitations are placed on accounts that break the PDT rule by placing 4 or more day trades within a 5 business day period.
The PDT rule was put into place by the SEC with the hopes that it would protect new traders from trading too frequently and quickly losing their money. In reality, a lot of time what it actually does is forces traders to hold risky positions overnight that they would rather exit the same day, due to them not having anymore day trades available.
There are a few ways that new traders can, in a way, get around the PDT rule to be able to place more day trades. First, they can look into opening an offshore trading account. Now, I know it sounds a bit sketchy... but opening an account with a reputable brokerage based outside of the U.S. is a legitimate way to get around the PDT rule. The reason this works is because the PDT rule is for U.S. traders and if your money is in an account outside of the U.S, you're free to trade as much as you'd like!
Another way to increase your number of day trades, without opening an offshore account, is to have multiple brokerage accounts. For example, if you have $2,000 to start trading, you could open 2 separate brokerage accounts with $1,000 in each and will then have 6 total day trades per 5 business days (3 with each account). If you're starting with a larger amount of money, but still under the $25,000 PDT minimum, you can even open more than 2 trading account if you'd like and will have 3 day trades in each one!
One issue you may run into using this method is that you can only have one margin account per brokerage. Margin accounts are required if you're someone that short sells or plans on doing some short-selling. Because of this, you should have separate accounts with entirely different brokerages. For example, one account with Etrade and one with TD Ameritrade.
Aside from the broker that you're using to do your trading, there are of course actual trading techniques and strategies that you can do with you small account that will give you better chances of growing over the $25,000 PDT minimum too. One of those strategies is to simply learn swing trading. You'll still be able to use your 3 day trades per 5 business days, but if you really want to put your money to work while your account is under the PDT rule, being able to profitably swing trade is an incredible way to grow your small trading account.
A swing trade is just a position held anywhere from a few days to a few weeks. This is different from day trading, which is when you exit your position the same day that it was opened. The nice thing about swing trading is that there are no limitations on how many swing trades you can place, even with a small account. One great way to swing trade is to follow stocks that already have momentum. By doing this, you're following the stock's trend rather than trying to fight it! "Follow the trend. The trend is your friend." - Jesse Livermore
You can use a screener like the one here on finviz.com to find stocks that already have some upward momentum. To do this you may include "Performance +10%" over the past week while screening. This will give you a list of that have gone up at least 10% in the past week. Of course, you'll want to narrow it down further but this is a good way to at least start searching for some stock with some upward momentum that you may be able to get in on.
The next tip for growing a small trading account is one that should be used regardless of the trading type that you're doing, whether it's day trading or swing trading. Risk proportionally to your account size. This means that, for example, if you would be risking $250 to $500 with a $25,000 account... you should only be risking $25 to $50 with a $2,500 account. It's important to know your max risk before entering a trade and using the proper position size based on your risk.
Doing this will help you prevent any major losses and save you from blowing your entire trading account with just one bad trade!
Hopefully instead of having to worry about blowing your trading account, you'll have to worry about my next tip. Don't remove your profits from your trading account. When you first start making some money it can be very tempting to move those profits straight into you bank account, but you'll never grow your trading account this way. In my opinion, you should maybe give yourself some milestone payments along the way, but keep a majority of your profits in your account until it's grown to your goal account size. By "milestone payments," I mean maybe withdraw some profits once you grow your account to $10,000 or $15,000, rather than randomly after you've made any profits at all.
Hope you found this helpful!
submitted by mtmtrader to stocks [link] [comments]

TD Ameritrade Traders?

Anyone ditching robin hood to switch over to TD Ameritrade or one of the other brokers now that they are commission free? Have never seen a screen shot here from anything other than robinhood
submitted by WSJCommenter to wallstreetbets [link] [comments]

Growing a Small Trading Account📈

Wrote a lil blog with some tips to help grow a small trading account! Here it is:
Almost every trader that is brand new to the market starts off by trading a small account, as they should. After all, why dive into the high-risk world of day trading with all of your hard-earned life savings at risk? It's best to start small and slowly grow your account, or even add more to your account in the future when you're more confident in your trading. However, most people dream of starting a small account of a few hundred or a few thousand dollars and growing it one trade at a time, which is obviously easier said than done. In this post I'll be sharing some tips and tricks that can help you grow a small trading account. Most of these I even used myself when I first got trading and I believe they played a big role in helping me grow my account.
Before getting to the good stuff, you may be wondering why it's actually more difficult to trade a small account than a large account. The main reason for this is because of the Pattern Day Trader **(PDT)**Rule. The PDT rule limits U.S. based traders with less than $25,000 in their trading account to only 3 day trades per 5 business days. Further limitations are placed on accounts that break the PDT rule by placing 4 or more day trades within a 5 business day period.
The PDT rule was put into place by the SEC with the hopes that it would protect new traders from trading too frequently and quickly losing their money. In reality, a lot of time what it actually does is forces traders to hold risky positions overnight that they would rather exit the same day, due to them not having anymore day trades available.
There are a few ways that new traders can, in a way, get around the PDT rule to be able to place more day trades. First, they can look into opening an offshore trading account. Now, I know it sounds a bit sketchy... but opening an account with a reputable brokerage based outside of the U.S. is a legitimate way to get around the PDT rule. The reason this works is because the PDT rule is for U.S. traders and if your money is in an account outside of the U.S, you're free to trade as much as you'd like!
Another way to increase your number of day trades, without opening an offshore account, is to have multiple brokerage accounts. For example, if you have $2,000 to start trading, you could open 2 separate brokerage accounts with $1,000 in each and will then have 6 total day trades per 5 business days (3 with each account). If you're starting with a larger amount of money, but still under the $25,000 PDT minimum, you can even open more than 2 trading account if you'd like and will have 3 day trades in each one!
One issue you may run into using this method is that you can only have one margin account per brokerage. Margin accounts are required if you're someone that short sells or plans on doing some short-selling. Because of this, you should have separate accounts with entirely different brokerages. For example, one account with Etrade and one with TD Ameritrade.
Aside from the broker that you're using to do your trading, there are of course actual trading techniques and strategies that you can do with you small account that will give you better chances of growing over the $25,000 PDT minimum too. One of those strategies is to simply learn swing trading. You'll still be able to use your 3 day trades per 5 business days, but if you really want to put your money to work while your account is under the PDT rule, being able to profitably swing trade is an incredible way to grow your small trading account.
A swing trade is just a position held anywhere from a few days to a few weeks. This is different from day trading, which is when you exit your position the same day that it was opened. The nice thing about swing trading is that there are no limitations on how many swing trades you can place, even with a small account. One great way to swing trade is to follow stocks that already have momentum. By doing this, you're following the stock's trend rather than trying to fight it! "Follow the trend. The trend is your friend." - Jesse Livermore
You can use a screener like the one here on finviz.com to find stocks that already have some upward momentum. To do this you may include "Performance +10%" over the past week while screening. This will give you a list of that have gone up at least 10% in the past week. Of course, you'll want to narrow it down further but this is a good way to at least start searching for some stock with some upward momentum that you may be able to get in on.
The next tip for growing a small trading account is one that should be used regardless of the trading type that you're doing, whether it's day trading or swing trading. Risk proportionally to your account size. This means that, for example, if you would be risking $250 to $500 with a $25,000 account... you should only be risking $25 to $50 with a $2,500 account. It's important to know your max risk before entering a trade and using the proper position size based on your risk.
Doing this will help you prevent any major losses and save you from blowing your entire trading account with just one bad trade!
Hopefully instead of having to worry about blowing your trading account, you'll have to worry about my next tip. Don't remove your profits from your trading account. When you first start making some money it can be very tempting to move those profits straight into you bank account, but you'll never grow your trading account this way. In my opinion, you should maybe give yourself some milestone payments along the way, but keep a majority of your profits in your account until it's grown to your goal account size. By "milestone payments," I mean maybe withdraw some profits once you grow your account to $10,000 or $15,000, rather than randomly after you've made any profits at all.
Hope you found this helpful!
submitted by mtmtrader to StockMarket [link] [comments]

Converting USD RSU to CAD

I have some RSU from my employer that vest gradually over a period of 4 years and at each vesting time, eTrade can either send me a check of wire the funds in USD. My plan is to have these proceeds end up in low cost ETFs in CAD currency in my Questrade margin account.
What would be the most efficient way of doing the currency conversion? Was thinking Norbert’s gambit, which would mean wiring from eTrade to Questrade in USD, without any conversion. Is that possible? Or any other suggestions?
submitted by persavon to PersonalFinanceCanada [link] [comments]

Quitting trading for awhile (or forever)

Quitting trading for awhile (or forever)
Need to get this off my chest. I've been trading for about 3.5 years, had a bunch of big wins but many more losses. As of right now, my salary has tripled since my first job out of college 3.5 years ago (low 6 figures) but I find myself literally taking any free money (few k a month) and yoloing it on momo plays on full margin. Blew up my account numerous times but keep on going
I'm in a long term relationship (about to get engaged) and I find myself making even riskier trades rather than setting aside this money knowing where it needs to go (engagement ring). I know if I don't put an end to this now, my life will deteriorate, my relationship will end, my stress will continue to be off the charts, and ill likely be alone (and possibly jobless as I trade during work and it takes away from my productivity).
I have $3k left in the account that I officially transferred into my savings account this morning. I turned off all my auto chatroom notifications, and I'm really trying to disconnect from the stock market. However, only 4 hours later I still find myself itching to open up ETRADE and see where my last position is now. I really don't like to use the term addicted, but I've got to come to the realization that I'm absolutely addicted to gambling, trading, etc and I need to take every step to fix this.
Even the fact that I'm making this post on wallstreetbets is a testiment to how autistic I truely am. If anyone else has dealt with something similar, i'd love any advice or insight, or maybe just some loss porn to make me feel better (joking lol)


https://preview.redd.it/vqqjro6lk5531.jpg?width=736&format=pjpg&auto=webp&s=c843852fb291e7ce1b4b652478407ccfa6c7b825
submitted by throwaway618199 to wallstreetbets [link] [comments]

Margin Trading 101: How It Works - YouTube Margin Trading: The Ins and Outs - YouTube What trading on margin means and how to use it  The Dough ... Margin Trading  Trading Terms - YouTube What is gross margin and how to use it with etrade (5 mins)

For each trade made in a margin account, we use all available cash and sweep funds first and then charge the customer the current margin interest rate on the balance of the funds required to fill the order. The minimum equity requirement for a margin account is $2,000. Please read more information regarding the risks of trading on margin. For each trade made in a margin account, we use all available cash and sweep funds first and then charge the customer the current margin interest rate on the balance of the funds required to fill the order. The minimum equity requirement for a margin account is $2,000. Please read more information regarding the risks of trading on margin. The eTrade brokerage account and Power eTrade. The Trading and Investing segment offers cash management, bonds, depositary receipts, margin accounts, retirement funds, investment portfolio, and corporate. 2020 current Etrade margin account rates: interest fees charged on trading with margin loan. Etrade base lending rate (BLR - broker loan cost). Etrade Margin Rates. Debit Balance Margin Interest Rates above $1,000,000 5.45% $500,000 - $999,999.99 Trading with margin is simply using borrowed money to buy or sell stocks short. Brokerage firms will allow you to use your cash on hand as equity in determining the amount Learn how to trade with margin while still adhering to strict money management principles.

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Margin Trading 101: How It Works - YouTube

What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... Updated Tutorial here: https://youtu.be/88C3kBKohpM Binance save 10% on fees: https://www.binance.com/en/futures/ref/blockbuilders In this video I am going t... Step by step of what gross margin and how to use it. I compare Apple and Microsoft gross margin. If the idea of margin trading sounds like a strategy that could work for you, find out how to get started. To get more trading insights go to http://www.schw... One trading jargon that you’ll hear very often is margin. It’s usually in terms like margin account, margin trading and even margin call. It seems a bit comp...

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