Her message said that she has $10,000 in her account and buys $20,000 in DELL, holds it overnight and sells in the morning.
By holding the DELL overnight, and with 25% margin maintenance requirement, her excess equity the second morning is $5,000:
.25 X 20,000 = 5,000 (MMR)
10,000 - 5,000 = 5,000 (Excess Equity)
So, her daytrading buying power the next day is 2X excess equity, or
2 X 5,000 = 10,000.
In her example she spends $20,000. That's $10,000 more than she is allowed.
Some firms won't close your account until 3 fed calls have gone un-met (3-strike rule). MB gives you 0 strikes. Definitely keeps you on your toes.
FWIW |
