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.
Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Wayners who wrote (2097)2/15/2000 11:56:00 PM
From: Dan Duchardt  Read Replies (2) of 2120
 
Wayne,

This looks right to me. I do have a problem though with examples #3 from:

investor.nasd.com

which is very similar. In this example, a customer starts the day with $50,000 Reg T excess. The final paragraph in the example says that if daytrading results in a $20,000 loss, the customer will get a Reg T call for the entire $20,000 (even though at the end of the day the account still has a $30,000 Reg T excess). The reason given is that

Regulation T requires additional margin when a transaction creates or increases a margin deficiency in an amount equal to the deficiency created or increased (see Regulation T, Section 220.4(c)(1)).

That statement is correct, but in the example there was no Reg T margin deficiency in the beginning ($50,000 excess) and none was created (still $30,000 excess at end of day). I think the concluding paragraph is wrong. Am I missing something?

Dan
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News