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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Lazarus_Long who wrote (508)6/11/1999 7:02:00 PM
From: Paul Viapiano  Read Replies (2) of 18137
 
Can someone explain margin maint requirements in English to me. I don't use margin but I was reading some info today on Datek and couldn't make heads or tails out of it.

Say somebody has $100K in account equity and goes on margin for $50K, so now their long stock value is $150K and account equity is still $100K.

Now the margined stock dips 50% and is now worth $25K but the account equity is still $100K. Is there a margin call? When does the margin call come?

Thanks, Paul
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