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Margin Loans and Margin Interest and Short Sales

Short Sales

To record a short sale transaction in Quicken, you just sell a stock you don’t own. To show that these are shares you actually owe your broker, Quicken displays the number of shares and the current market value as negative amounts in the Portfolio view. To record the transaction in which you close out your short position by buying the stock you’ve previously sold, you record a stock purchase in the usual way.

Margin Loans and Margin Interest

If you purchase a security and the total purchase cost exceeds the cash balance in a brokerage account, Quicken assumes that you’ve borrowed the needed cash on margin from your broker. To show the margin loan, it displays the cash balance as a negative value. To record margin loan interest in cases where you have a linked cash account, you record the margin loan interest as an expense when you record the withdrawal from the linked cash account that pays the margin interest.

To record margin loan interest in cases where you don’t have a linked cash account, click the Easy Actions menu, click Advanced, and then click Margin Interest Expense. When Quicken opens the Margin Interest Expense dialog box, use it to describe the margin interest.

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