Off Topic Re Margin
jhg,
In general, additional securities can be purchased in a margin account, or cash can be withdrawn, until the margin debt outstanding rises to equal 50% of the value of the marginable securities in the account.
For example, if you have $10,000 of marginable securities in your account, no cash balance, and no margin balance, you can purchase up to an additional $10,000 worth of marginable securities. Alternatively, you could withdraw up to $5,000 cash.
If you have cash in an account and make a purchase of securities, this cash balance will automatically be used first for the purchase. If the amount of the purchase exceeds the cash in the account, then the excess amount will be the amount of the new margin debt.
I hope this is helpful.
JB |
