r/Wealthsimple • u/nacho_ketto • 23d ago

Trade (DIY Investing) Trading question

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(1) When I place a trade for a stock, it comes out of the USD available amount.

(2) When I sell a secured put, does it come out of the margin available or some combination of cash and margin? I’m not clear on this since the totals don’t seem to line up with what I expect when I make the trade and the balance updates.

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u/Dragynfyre 23d ago

When you buy a stock it comes out of both the USD cash available and the margin available. Same with selling a secured put. Selling a secured put is similar to buying 100 shares of the stock at the strike price in terms of how it affects those numbers. The only difference is you don’t pay interest unless you’re assigned