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Negative Margin from selling options with tD

  • Last Updated:
  • Apr 30th, 2021 5:17 pm
[OP]
Sr. Member
Mar 14, 2015
763 posts
59 upvotes
Edmonton

Negative Margin from selling options with tD

When my margin column is shown as negative, does that equate to me paying interest on that amount? I sold put options and I thought I only had to pay interest when the option exercises, am I wrong and selling means I already have to start paying up fees for the margin?
4 replies
Deal Addict
User avatar
Jan 14, 2009
2546 posts
1498 upvotes
Vancouver, BC
FlyOverMyDoodle wrote: When my margin column is shown as negative, does that equate to me paying interest on that amount? I sold put options and I thought I only had to pay interest when the option exercises, am I wrong and selling means I already have to start paying up fees for the margin?
Negative margin is cash.
[OP]
Sr. Member
Mar 14, 2015
763 posts
59 upvotes
Edmonton
It's the cash needed if the put was exercised to cover the position but do I already need to pay interest if it's not exercised/expired?
Deal Addict
User avatar
Jan 14, 2009
2546 posts
1498 upvotes
Vancouver, BC
FlyOverMyDoodle wrote: It's the cash needed if the put was exercised to cover the position but do I already need to pay interest if it's not exercised/expired?
Oh I see, then no interest, it will just reduce your buying power.
[OP]
Sr. Member
Mar 14, 2015
763 posts
59 upvotes
Edmonton
My buying power is reduced but my margin also shows a negative after I sold it ... so wondering if TD is one of those who charge interest on things like this

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