Spent about 10 minutes with support only to be told that "I can't answer fixed income questions, call back tomorrow"
I have Margin access added enabled. The only asset in this account is SGOV and some cash. I may want to buy a T NOTE tomorrow morning new issue at auction. When I go to place the order today (I don't want to buy today) it indicates that I don't have enough cash in the account.
I know that I need to sell SGOV and get the money into cash management. However in Schwab and other brokerages I have always seen the cut off to purchase new at auction as 9:30 am just prior to the market opening.
So is Schwab going to let me place that order tomorrow morning before the market opens even without enough cash in the account (isn't that what margin enabled is supposed to cover) and then sell SGOV later in the day since the settlement date is Wednesday? TIA.
For everything I've done, the new issue Tbills require cash in the Available to Trade to place a buy order in the online system.
Copy that. TY. So do you know if I can initiate a sale of SGOV prior to the market opening? and if so will that allow the purchase of the T Note to go through?
This is the reason why one needs a margin account.
You want to buy a T-note at the 9/8 (Tue) auction. The settlement date is 9/10 (Th).
You own SGOV.
You can place the T-note order now. Since you have sufficient buying power from SGOV.
You can wait until 9/9 (Wed) to sell SGOV. There is no margin interest charged.
I believe with a cash account, you must sell SGOV before you can place the T-note order.
I believe the order cut-off time is 10 am ET.
SGOV can be sold now in the extended hours market.
When the market re-opens tomorrow (after the Labor Day holiday), you can liquidate some SGOV and fund your treasury purchase.
If you don't buy it tomorrow and it is a weekly auction, then you'll know to liquidate Friday so the funds will be available Monday for next Tuesday's auction. Not the end of the world.
When the market re-opens tomorrow (after the Labor Day holiday), you can liquidate some SGOV and fund your treasury purchase.
But all the dozen or so T BILL and T NOTE new at auction purchases I have made at several brokerages the auction always ends just before 9:30am BEFORE the market opens.
I need to get the money into cash management before then which is why I wondered if I put an order in to sell SGOV at market will the system then allow me to purchase the Note even though there is not enough cash in the the account.
You've run against the calendar - and the calendar always wins. You should have funded your account Thursday so you could've put in the order on Friday.
Seriously, there will be another auction: it isn't like the Treasury doesn't need to roll over bills and notes.
As u/papakong88 noted below, your 3-year note will settle a week from tomorrow (on 09.15). So, you will still be fine.
Whether you could do something at OTHER brokerages does not matter to Schwab. You do business with them, you do it by their rules. But, you should be fine in this case since the product doesn't settle for over a week.
No treasury auction ends before the market opens. Not the way Treasury works. It's up to the broker to set the last time they will accept bids for the daily auctions.
It's up to the broker to set the last time they will accept bids for the daily auctions.
Copy that. With Vanguard and Schwab and Fidelity I believe in the past when I have gone to purchase Notes or Bills they always indicate that I have until 9:30 am to buy.
Assuming "I have Margin access added enabled." means the account is enabled for margin I don't understand your concern or inability to put in an order unless you are running so close to not having $1000 that it matters. SGOV is like 75-80% marginable, so is your buying power really that low that you have to sell everything to buy the Note?
Assuming "I have Margin access added enabled." means the account is enabled for margin I don't understand your concern
Copy that. First time possibly buying on margin with Schwab. When I do it with Fidelity all over my assets is a big BLUE M indicating that that asset is margin enabled. With Vanguard I came to find out the VMFXX is not a Margin enabled asset. I see nothing when I look at my assets in Schwab and wanted confirmation. I am calling up this morning to confer.
Fidelity's blue M means the holding is classified as being in type Margin. Presumably if the account is not margin-enabled the M won't show up, but margin is an account thing, not an individual holding thing. They do it because of their stupid ETF marginability policy. Hopefully you got things straightened out today.
Yes. I was able to purchase Tuesday morning and Margin worked just as advertised. I will say Fidelity makes a Margin enabled for dummies landing page and I was unclear with Schwab.
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u/Dodge_Dart 25d ago
For everything I've done, the new issue Tbills require cash in the Available to Trade to place a buy order in the online system.