I will check on when you can Margin this stock, if any one knows.
please post, maybe if it trades over 5 for so long.
Robert,
All brokerage houses can and do have different internal margin requirements but I called Fidelity Investments (my broker) with the same question when FCM started trading on the AMEX. Here was their answer:
1. On AMEX traded stocks, when they trade at over $3 they are "marginable". However, the "maintenance" requirement from $3 to $4 is 100%....so technically (because of the 100% maintenance requirement) they aren't really marginable until they trade at over $4 per share.
2. Examples:
A. Let's say you own 10,000 shares of FCM and it is trading at $5. In this example, you can borrow 50% of the difference between $40,000 in value (FCM trading at $4) and $50,000 in value (FCM trading at $5)....put another way, you can borrow $5,000.
B. If FCM were trading at, say, $25, you could borrow %50% of $210,000 (the difference between FCM trading at $4 and FCM trading at $25).
Dave
p.s. They have different margin rules for stocks traded on the NYSE (more relaxed). |
