This was super helpful and straightforward, thanks. Just to confirm are you doing this in a brokerage account or retirement account? And do you account for taxes in your math? So the example 15% spread is cut by margin fees and taxes (but still profitable)
This was super helpful and straightforward, thanks. Just to confirm are you doing this in a brokerage account or retirement account? And do you account for taxes in your math? So the example 15% spread is cut by margin fees and taxes (but still profitable)
Hey there! Good question. I do this in a regular brokerage account (non retirement).
I personally do consider taxes as part of the calculation but for the sake of simplicity in this article, I didn't even include that.
Forgot to follow-up on this, but thanks for clarifying. That's how I'm running my calculations too.
Clear, clean cut breakdown, thank you for the explanation. Margin seems scary to someone new, who doesn’t know much about it.
Awesome strategy! I did look into margin requirements at Fidelity. I don’t qualify yet.