Does TD Ameritrade charge interest for reinvesting your own money in a margin account?

Question

I have a TD Ameritrade margin account with $10,000 cash in it.
Morning: I buy ABC stock for $10,000.
Noon: I sell my ABC for $10,100, making $100.
Afternoon: I want to buy stock XYZ using $10,100.
Technically, TD Ameritrade must lend money so that I may purchase XYZ.  Since the  noon sale settles in 2 business days, will TD Ameritrade charge interest?  Or is my $10,100 considered immediately settled money?

Bob Baerker · Answer

The sale of your stock generates $10,100 of buying power. A margin account allows you to use unsettled funds for new purchases so no interest will be charged on your second purchase. You pay margin interest when you borrow money from your broker to buy securities on margin (not the case here).

Answered by Bob Baerker on August 6, 2020

Does TD Ameritrade charge interest for reinvesting your own money in a margin account?

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