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Technology Stocks : INTEL TRADER

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To: Trading Machine who wrote (7367)	12/11/1999 5:13:00 AM
From: Berney	Read Replies (2) of 11051

TM, I'll respond over here. The basic problem is the numbers. Don't get caught up in the side show! Let's assume you used your entire account to buy MO (6000 shares x 26.125 = $156,750 --- fully margined --- account value before trade $78,375 --- 50% margin requirement generates problem at $117,563 --- divided by 6000 shares equals problem at $19.59 share price). The issue would arise when your account value hit $58,782 or 75% of the original trade amount. Sometimes you just got to teach them some basic math. Then again, maybe I need to learn the new math. <g> Now if they say that you can only use 50% margin to begin with, that's a different issue; but the margin call would have been a lot bigger. On a macro level, this issue killed the nutz in the spring, and it will be interesting to see what Market effect it has. Why don't you call me and I'll then put them on a conference call. Worst case, tell them to sell the 35 shares. <gg> TB

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