What is a stock settlement?
Stock settlement refers to the completion of a trade through the delivery of the security and the payment of cash. The settlement time (usually T+2 or two business days after the trade date) is the date on which ownership changes between buyer and seller.
What is an instant settlement?
If you have a Folionet margin account, with an account value of $2000, you have instant access to funds and proceeds from stock transactions. This means that if you sell a stock today you dont have to wait for the usual (T+2 or two business days) to access those funds.
What is the buying power?
The buying power is the amount of fully margined securities, that a margin client may use to purchase stocks, using only cash, securities, and special memorandum account balance and without depositing additional equity.
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What is Margin Security?
Is a security that is eligible for purchase on margin. A firm is permitted to lend money to help customers purchase these securities and may accept these securities as collateral for margin purchases.
What is a Margin Call?
The Federal Reserve Boards demand that a customer deposits a specific amount of money or securities when a purchase is made in a margin account; the amount is expressed as a percentage of the market value of the securities at the time of purchase. The deposit must be made within one payment period.
What is a Margin Maintenance Call?
A demand that a margin customer deposit money or securities when the customers equity falls below the margin maintenance requirement set by the broker/dealer.
What is the Margin Maintenance Requirement?
Is the minimum equity that must be held in a margin account, determined by the broker/dealer. The amount of equity required varies with the type of security bought on margin, and the broker-dealer house requirement.
How Folionet calculate the cost basis?
The cost basis is the price paid for a stock, used to calculate capital gains or losses when the asset is sold. We use the First in, First Out in which it is assumed that the first goods acquired are the first to be sold.
You can watch your average cost basis in the positions display by tapping on each security.
Why my bank deposit is not available right away?
The deposit time frame is between 4-5 business days because we need to be certain that the funds posted in your account are not returned to the bank. This could happen for the following reasons