SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : How high will Microsoft fly?
MSFT 472.920.0%Jan 5 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: CRICKET who wrote (2711)8/15/1997 8:21:00 AM
From: jim shiau   of 74651
 
CRICKET,

>How far would the stock have to decline in order for the margin call to be activated? 25%?

It is dependent on your brokerage firm, but 25% is min requirement by SEC. I am in Charles Schwab, and it is 30%. My recommand on the margin are (1) Only use it for short term, not for a long term. (2) If you can't control your itch hand, don't use it, otherwise you will get the margin call very quick. (3) Understand the risk of using margin, and draw a bottom line (such as 35%) that you can take.

Jim S.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext