Why do I have such a LARGE negative balance when trading options on margin? via /r/wallstreetbets #stocks #wallstreetbets #investing


Why do I have such a LARGE negative balance when trading options on margin?

First day trading live. I used about 23K. After a few trades my available cash balance to trade was so low I could no longer trade. So I applied for margin and was approved instantly. I traded for a couple hours and made just over $600 today off that 23K trading options. I would have traded longer but due to the dollar amount of this account being sub 25K I would be flagged as a Pattern Day Trader so I left it alone until my wire to add to this account goes through and I have more in it.

That said, even though I made money trading options today, after just 2-3 trades after my margin account was approved, buying and selling QQQ, 5 to 10 contracts at a time, I have a negative balance of 295K in my thinkorswim account. How on Earth is this possible? Why so much? I understand tomorrow this will reset and go away, but Jebus did I really use THAT much margin buying and selling 10 contracts at a time for QQQ?

Submitted March 14, 2022 at 07:16PM by RemoteDesktop
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