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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Paul Viapiano who wrote (509)6/11/1999 8:22:00 PM
From: Joe Lyddon   of 18137
 
Margin: Nothing more than borrowing money using your acceptable (marginable) stocks as collateral.

Rule: You must maintain your collateral (value) vs what you borrowed(owe) to a specified % (or more).

If you borrowed using your house as collateral & the value of your house suddenly dropped (not likely to occur), there is probably fine print in the loan papers that state "pay us more money... you don't have enough collateral any more".

Same way with stock... Stock CAN drop suddenly... Bingo...

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