What is dealer credit?

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Hi all,

Im new to investing and have a barclays stockbrokers account. I had put in £3000 but having sold the shares I had, the "available to invest" was about £5500. Can anybody explain how this works? Am I able to invest this amount even if I don't have that amount of cash in my account? If so, how does it work in terms of paying it back? Can I keep it as long as I need to? Do I pay an interest charge?

I hope someone can help as I am really confused! :cry:

Thanks in advance.
 
... Am I able to invest this amount even if I don't have that amount of cash in my account? ...

Probably yes, but only until the settlement date - if you don't put the cash in by that date expect the broker to sell one of your holdings or charge punitive interest (That's for the U.K., in the U.S. it's more accepted to buy on margin).
 
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