 Cash or margin? What's up, money geeks, Mr. V here. Welcome to the new video, guys. So into this video, we'll take a look at the difference between a margin account and a cash account on the Weibo platform. So a lot of people have been moving accounts from Robinhood or M1 Finance to Weibo. And so when they sign up, there's this question about which account type you want to open. So a lot of people are similarly confused. So I thought it better to just do a video to kind of explain that. But before we get started, guys, if you're new to the channel, we talk about how to earn money, how to save money, how to invest, and build wealth. So if that's something that interests you, go ahead and hit that Subscribe button and the notification bell so you don't miss out on new content. So when you sign up for Weibo, you get the option of picking what kind of account you want to open, so account type. So there's two options. There is either a cash account or a margin account. So a lot of people get confused. But before I even jump into the actual differences of those two account types, if you are moving from, let's say Robinhood or M1 to Weibo, especially Robinhood, make sure that when you open an account with Weibo, you match the account type that you have with Robinhood. So if you have a cash account in Robinhood, make sure you have a cash account in Weibo. If you have a margin account with Robinhood, make sure you open a margin account with Weibo. If you open a cash account with Weibo and you have a margin account with Robinhood, what you can do is you can go into Weibo and actually change the account type from a cash account to a margin. The only problem there is if the account doesn't have over $2,000 in some change, you cannot convert it to a margin account. So you have to have over $2,000 in the account to convert it to a margin account. So that's the latest one that you guys know. So let's look at the differences here between a margin account and a cash account. So as you can see, the account type or a cash account on the Weibo platform has unlimited net account value. What that simply means is that you can deposit any amount in the account, it doesn't matter. And so there's no limitations with how much you can deposit in the account. Whereas a margin account on Weibo, you have to deposit at least $0 to $2,000 to get you started. And then based on how much you have deposited in the account, it limits the amount of trades that you can perform. So in Weibo, when you have a cash account, you have unlimited trades. Again, in Weibo, when you have a cash account, you have unlimited trade. I'm just repeating that because a lot of people coming over from Robin Hood would probably hear that and think like, okay, that doesn't make any sense. Whereas if you have a margin account, if your value is between $2,000 and $25,000, you get three day trades in five business days. So if you do one day trade today, you do one day trade tomorrow, you do one day trade on Wednesday or on Thursday. I'm just using Monday through Thursday here. What's gonna happen is that Thursday and Friday, you can't do any other day trades. You're gonna have to wait until the next week again before you can actually start day trading again. And so I mentioned that you have unlimited day trades with a cash account, but here is where it gets a little bit tricky. So the only money that you can use a day trade in a cash account would be cash that has settled. So for instance, if you have, let's say $1,000 in your account and then you use that $1,000 and day trade with that money and buy and sell a particular security, that money, you cannot use that money again, even though you've sold that security, you cannot use that money immediately to buy another stock and sell it. You, they can let you buy it, but you cannot resell it. If you do that, they'll give you what are called a good faith violation. So if you don't want to, the little trick about that is for most people, if you have $1,000, I'll just split that money into two, $500 a piece. And then what you do is you use $500 to trade today and then use $500 to trade tomorrow. And then the next day, when you come in, the $500 that you started trading with would have settled and they can use that. So just a little trick for you guys. So let's go through it. So margin accounts, once you have over $25,000, then you get unlimited day trade. So you can buy and sell as much as you want. And then with margin accounts, you get a short selling. So for those of you that are new to this, what I mean, short selling is that you can actually sell a security at a higher price and then buy at a lower price and make profit, just like when you go long. So if I, for instance, if I see a stock that I know that the price is gonna go down, let's say if it's $10, I can sell that stock at $10 and then wait for the price when it goes down to say $5 and I can buy at $5. So I just made $5 profit per share. So that's short selling. But with a cash account, you can't do short selling. So that's one of the downsides of a cash account. So again, those are the key differences between a cash account and a margin account. So you're probably asking yourself like which one is right for you? So if you anticipate, oh, even before, one other thing that I didn't mention and I really, really, this is very, very important with a margin account in Weibo is that they give you leverage and by leverage, I mean, if they give you deposit, let's say $10,000 in your margin account, they give leverage. They can give you maybe a times two leverage so you can have $20,000 to deal with. So using that money, you can make a lot of profit. At the same time, you expose yourself to losing money. So here's a good example. If you have a cash account, you buy security and that security goes down to zero. You only lose the money that you put in there. But if you use your leverage in the margin account and buy security, let's say you put $10,000, you buy security for say $12,000 using $2,000 leverage, if that security goes down to zero, you don't only lose your $10,000, but you owe $2,000 to Weibo that you're gonna pay with interest. So that's just something to be aware of. Those are the key differences between a margin account and a cash account in Weibo. So you're probably asking yourself right now, which of this account is good for me? I would say that if you are somebody that is not very comfortable losing a ton of money and not using leverage, I'll say you can do a cash account too, you know you're only dealing with your own money. But the downside again for that is you cannot do unlimited trades. But if you are somebody that's looking at doing day trading and you want to consistently trade daily and you know you would have over $25,000 in your account and then a margin account is good for you because even if you don't use the leverage on your margin account, but you still have unlimited day trades so you can buy or sell as many times as you want with your margin account in Weibo. So there you go guys, that's it for the video. Let me know in the comment section, what kind of account do you have, which one do you prefer, a margin or you prefer cash account? In case like, hey, cash account, I can only lose my money and I don't have to worry about anything. A margin account, I can lose my money and lose the leverage and I have to pay it back with interest. Let me know in the comment section. Like, share, subscribe. YouTube tells me that 90% of you guys watching haven't already subscribed to my channel. So go ahead and hit that subscribe button and the notification bell. And as always guys, stay motivated.