It's negative for the calls because you're short them and would have to pay $4000 to buy them back. I now have a big chunk in my money market and still a big negative balance on my margin balance. Hi, I’m an idiot, and I decided to put some of my salary to good use in E TRADE. Problem is, I'm not sure if this is still valid, it's from 2010 Source: The minimum equity requirement for a margin account is $2,000. Company makes an adjustment of the full amount of negative Balance from own resources. Check the background of E*TRADE Securities LLC on ... 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. After I transferred it to my E TRADE account, it was available for investment but hadn’t settled. Negative cash balance despite on a cash account, no fees, didn’t buy on margin? This has nothing to do with margin trading. Interest Charged on Margin Loans View Examples. Buying on margin is the purchase of an asset by paying the margin and borrowing the balance from a bank or broker. Is the negative cash balance in the investment account the same as the positive cash balance in the Schwab cash account? E*TRADE is considered safe because it has a long track record, is listed on a stock exchange, has a banking background, discloses its financials and is regulated by top-tier regulators. Additional restrictions on margin debt also exist, such as a limit for accounts of less than a certain size (usually $2,000) or when trading so-called penny stocks . 6.3. If you look at the transactions view of the investment account, sorted by date with the balance column showing, you will see that when a security is bought, the cash balance decreases. If a Stop Out execution has resulted in a negative Balance of the Customers Trading Account, the Customer shall not be liable for this loss. For example, for a balance over USD 1,000,000, the first 100,000 is charged at the Tier I rate, the next 900,000 at the Tier II rate, etc. E*TRADE does not provide negative balance protection. What gives! more. Accrual or Cash basis balance sheet is out of balance Payment summaries are not calculating correctly, some figures are wrong and I have a 0 ( zero ) tax when processing pays QuickBooks cannot open this data file because it was created in a different flavour. You might not face a margin call until your combined account balance declined by 33.33% to $133,333, at which point the debt would be 75% of the total account balance. I bet they did (thus your cash balance went up) and the -$4000 is the "value" of the calls just as there is a positive entry elsewhere for the value of the FXP stock. Open Trade Equity (OTE) Definition. When calculating rates, keep in mind that IBKR uses a blended rate based on the tiers below. E*TRADE does not provide negative balance protection. 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