Intel Corporation (INTC) Message Board

STOCKTALK

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.

Technology Stocks : Intel Corporation (INTC)

INTC 50.59

+4.9%

Feb 6 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Richard Forsythe who wrote (9342)	1/27/1997 1:17:00 AM
From: carl a. mehr	of 186894

Richard and all, Your statement that >>>-- a 25% drop can result in a margin call and/or a forced sale. <<<< is close to true, but it takes a little more than that. Let's play with figures: Let's say that you are exactly at max margin limit 50/50. Take a small portfolio of long value $10,000. A drop of 25% will make the equity equation= (Portfolio Value)/(Long Value) change from $5000/$10000= 50% to $2500/$7500= 33.33% still no margin call because your equity position did not go below 30%. I enjoy the postings, and in particular was in agreement with Eric Lindstrom post 9336. Best Regards, humble carl

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next