Hi guys,

For anyone who has brokerage trading experience on margin, I have simple question:  how is interest on margin "paid"?

I ask this in the context of interactive brokers but I assume the way you pay margin interest is the same everywhere.  Is it a check you write every quarter?  Or do brokerages automatically pull the interest on margin out of your principal when the trade on margin comes full circle (i.e. the trade is sold and margin is closed).

Would appreciate the discussion.  Thanks :-)