Hi
I have margin enabled on my vanguard margin. Never used it or intend to use it.
(But once I got charged few cents margin interest, because I with drew funds that were not settled yet. I asked VG to waive it, they said no)
Today I sold a put option. VG gave below warning at the order page
"we might reject order as it requires cash if assigned etc. 'Cash available to trade' will be shows less etc.'
Anyways the put sell order went through and my account got credited with the premium.
Questions I have
1) The settled premium is not in the VG settlement fund.
It is in 'Total credits and debits' and 'Available balance'. why it is not in settlement fund.?
I saw this same thing happen to bank pulls VG did when I was buying VUSXX (told VG to pull funds from my bank)
Looks like VUSXX also gave AUG'24 interest, it doesn't show up anywhere(transaction history etc.) on VG website, but above fields got updated to include that.
Anything not ordinary here?
2) I plan to 'buy to close' this option before expiry (09/20).
I don't mind getting assigned, but I think I will not get assigned.
But just in case if this gets assigned to me and I do not have funds in VG settlement fund, will VG auto-liquidate my positions to cover this or I have to do it explicitly? My positions are (VTSAX, VFIAX, VTMSX, "VUSUXX"). Also I guess in this case margin interest will get accrued.
Does VG has Fidelity like auto-liquidate from $1 NAV funds? If VG does auto-liquidate what is order of funds it uses and what %?
Should I develop a cash position here in VG settlement fund right now or can I initiate a cash position (basically sell VUSUXX) on the day if I get assigned?
3) I checked 'Month-to-date margin interest' field nothing shows up there.
Also where to check for total margin charged so far if any on the VG website? Transaction history doesn't include any filter/field for margin.
Thanks
I have margin enabled on my vanguard margin. Never used it or intend to use it.
(But once I got charged few cents margin interest, because I with drew funds that were not settled yet. I asked VG to waive it, they said no)
Today I sold a put option. VG gave below warning at the order page
"we might reject order as it requires cash if assigned etc. 'Cash available to trade' will be shows less etc.'
Anyways the put sell order went through and my account got credited with the premium.
Questions I have
1) The settled premium is not in the VG settlement fund.
It is in 'Total credits and debits' and 'Available balance'. why it is not in settlement fund.?
I saw this same thing happen to bank pulls VG did when I was buying VUSXX (told VG to pull funds from my bank)
Looks like VUSXX also gave AUG'24 interest, it doesn't show up anywhere(transaction history etc.) on VG website, but above fields got updated to include that.
Anything not ordinary here?
2) I plan to 'buy to close' this option before expiry (09/20).
I don't mind getting assigned, but I think I will not get assigned.
But just in case if this gets assigned to me and I do not have funds in VG settlement fund, will VG auto-liquidate my positions to cover this or I have to do it explicitly? My positions are (VTSAX, VFIAX, VTMSX, "VUSUXX"). Also I guess in this case margin interest will get accrued.
Does VG has Fidelity like auto-liquidate from $1 NAV funds? If VG does auto-liquidate what is order of funds it uses and what %?
Should I develop a cash position here in VG settlement fund right now or can I initiate a cash position (basically sell VUSUXX) on the day if I get assigned?
3) I checked 'Month-to-date margin interest' field nothing shows up there.
Also where to check for total margin charged so far if any on the VG website? Transaction history doesn't include any filter/field for margin.
Thanks
Statistics: Posted by RetireGood — Tue Sep 03, 2024 1:51 pm — Replies 2 — Views 160