Robinhood margin interest rate has increased from 4.25% to 5% from July 28

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  1. If you’re paying 100 dollars each month in margin interest at 5% yearly, you have around 24,000 dollars of margin debt. Either you’re trolling or you need to sell some positions.

  2. Just looking at the dollar value of margin debt is pointless, look at it on a percentage basis. If his portfolio is $30k and he has $24k in margin, that’s probably problematic. If he has $1,000,000 of equity, $24k in margin is not likely to be an issue.

  3. That's right, i see i have 24K of margin used .. Sell Positions or add another 24K .. Which is better option

  4. This is what margin did to me. About 200k cash, I maxed 550k margin. 750k total. Thought was post labor day market would take off. Just the opposite, it began tanking. I was dumping every day that week to Avoid a call. End of week cash was 30k.

  5. Margin can be good if you are using it to take out a low interest loan against stocks. I don't use Robinhood, but I'm planning on buying a car soon. Average used car loan is over 10%, webull charges 6%. I'm not paying 10-15% on $5000

  6. They're not mutually exclusive. I use some margin but very strategically and with a portion of my money that doesn't impact my emergency fund or retirement accounts.

  7. I’m honestly pretty surprised that this was the first comment I saw that pointed this out. You’d think people on this sub would pay attention to when the Fed changes interest rates but then again I’ve seen some ignorant-ass posts on this sub before lmao

  8. Since none of the comments addressed your question…. Please feel free to start the thread again below this one.

  9. This guy doesn't know how to reduce margin amount, do you really think he is aware of things like fed rate hikes??

  10. If you have the mental capacity to do so, deposit money and set a hard stop loss at a certain point. Basically borrowing money from yourself

  11. That means it's a perfect time to stop trading on Robinhood and a great time to NOT TRADE ON MARGIN. Jesus.....the stupidity it takes for people to gamble on margin is nuts.

  12. It’s almost like interest rates were increased by .75%? What is this shit? If you don’t understand these things you shouldn’t be using margin full stop. Unless you have what appears to be another 25k to put in comfortably you need to close some positions and take the loss. You could keep trading and learning more and keep the positions you believe in long term. If you are however making decent returns on your trades you can disregard this and keep doing what you are doing. You obviously understand the risk.

  13. margin is borrowed money, you pay interest on that borrowed money, rates are up because the fed is raising rates

  14. I also had 24k in margin. This last increase convinced me to get out of margin by selling an aggressive covered call. Unfortunately I’m letting them go below my cost basis but I doubt we’ll be reaching November 21 prices again for awhile

  15. I’ll just say what everyone else is saying, so the point is not lost and is over emphasized: DO NOT TRADE ON MARGIN/DO NOT TRADE WITH MONEY YOU DO NOT HAVE

  16. It still boggles my mind that after everything they did, people still use Robinhood... This is why corruption exists. Y'all too lazy to stop using Umbrella Corp products.

  17. Lol - this new phase of the market is going to be hilarious because a lot of people have absolutely no clue what they are doing.

  18. Just as a reminder investment interest expense is deductible to the extent net investment income in the year it is incurred.

  19. Yeap it was bull trap. Retails are jumping . Big guys are dumping.. obvious thing. Retail bulls are just in a big hopium

  20. I am sailing in the same boat with 40k in margin... I have been selling CC and recover some towards the interest. When some of the stocks recover and stays above my cost basis I am selling those stocks to reduce the margin. Margin is really like hell..try closing it asap.

  21. I learned the hard way (though luckily it wasn't a terrible amount of money) that margin interest was even a thing on my ToS account. As soon as I found out I could add cash to bring that margin balance to 0, I did. Still expecting a bill for next year, though...

  22. Get your margin balance under $1k. If you look under your settings, theres a margin option that will tell you your balance.

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