The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
You just have to keep enough money in to cover your margin.
So if (random numbers) the margin is 30% and you open a position of £1,000 you need £300 in equity or cash in your account at all times to cover the trade.
So £1k you have £300 equity - all good.
Drops to £500 you have £150 equity - need £150 cash to cover.
So as IG is the hot topic:
Their rates for example are:
"We charge 2.5% above the relevant interest rate benchmark.
Eg. If the interest rate benchmark is 0.5%, you would be charged 3.00% (annualised)."
So as the base rate is 0.1% that should be 2.6%. They provide a formula also:
I work that out to be £239.20 (on £9200), which using a 365 accrual method is about 66p. YMMV due to rounding/my lack of diligence as it's not my money (sorry).
"If the LTSH understands anything it’s an eternity. Disgraceful share with absolutely zero prospect of climbing above 50p this side of 2024"
So much to unpack there... I'll just go with the ungraspable nature of eternity.
"thats DYOR"
Generating a gaussian distribution? How come nothing happens on the 28th? Results day and the price just bobs along unaffected either way. World's laziest.... I'd say scam but it's not even that. It's baffling.
"https://poundf.co.uk/lloyds-share-price-forecast"
That's mental.