I've been looking at applying a margin loan to my already existing trading system and would like to clarify something.
Is it correct that interest is only charged from the time the loan is used to buy the shares until the time the shares are sold?
For example, if I take out $16 000 on a margin loan at 10%p.a. and the period of time from when I bought the shares until when I sold them is 20 days, would the interest then be;
$16000 x 10%
1600 x 20/365.25
Interest = $87.60