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Strategies & Market Trends : Options
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To: KFE who wrote (5754)3/30/2000 3:48:00 AM
From: Tim O.  Read Replies (1) of 8096
 
<<Why use T-Bills: If you use cash instead as collateral your broker may deduct the margin requirement from any cash balance you have earning credit interest.>>

Hmmm... I've always taken for granted that interest is earned on all of the cash balance. I'll have to pay more attention.

About the T-bills, isn't there an inherent risk on the bond prices itself? The difference between money market rates vs. T-bill might not be worth the risk.

Appreciate your thoughts.

tim
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