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Non-Tech : Waterhouse Securities
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To: margin_man who wrote (640)8/2/1998 3:30:00 AM
From: dumbmoney   of 2076
 
Only cash can be used as collateral for short sale. Non-marginable
options or stocks can't be used as collateral because they don't
generate buying power.

Marginable stocks, or marginable anything, can be used, though.

Yes, your equity will increase/decrease depending on the current
market value of the shorted security. You will have more buying
power if the security goes down. See example above.

Right. In addition, unrealized gains will be added to your cash account (unrealized losses will debit your cash).
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