First, while I am a options and sales principal, I am not a margin guru. The answer is pretty simple, it seems. On most retail accounts (non retirement), buys and sells are based on time sequence. Thus if you started with 10000 in cash (lets assume you buy marginable stock) you have 20k in buying power. Think of it like a dog leash, you can go out and about and around but at any one time, you can never have more than 20k out there.
Unless it has to do with settlement proceeds, my feeling is that you would have 22, indeed. Many times I have done very well and used profits in calculating NEXT DAY's buying power, etc. Now, there should be no difference between intra calculationa nd next day calculation. Only a 3 day difference might play (settlement period) into it andi have never seen this.
To me , it seems it is a matter ofyour firm not wanting or being able to calculate the tickets relative to the time of executions,(verifying you never went out beyond your leash).
On some occassions where the margin clerks get picky, I have had to lay out for them each ticket, bot this, sold that, profited 1, added to buying power 2, etc. to prove the client never exceeded buying power.
Anyway, hope it helps
Regards,
Steve@yamner.com |
