not only that, but margin is used on SHORT positions too.
in fact, you NEED a margin account to be able to short a stock.
why do they assume everybody using margin was long MSTR, ASKJ or INSP (he he he) at the top and are losing their arses??
many were short and made a fortune.
hey, i shorted INSP *on margin* for chrissake!
and 2nd, why do they assume margin is being used in cratering LONG TERM positions?
hey, i can be margined to the HILT on a daily basis, long or short, closing the position before the bell, and the risk for me and the brokerage is very very low!
if you use margin, most probably you are very aware of they risks you are running into, and use protective stops.
there are many mechanisms in place to protect the brokerage.
if your positions goes against you and your margin debt = your total account equity, even on an intraday basis, THEY JUST SELL YOU OUT, AUTOMATICALLY.
they don't know what else to invent to keep a lid on the ETRADE MACHINE.
meanwhile, where are all those analysts who gave strong buy after strong buy to ICGE, ASKJ, INSP, ETYS, etc, at the top.
hey, Goldman Sachs has a TRADING BUY, $ 80-90 price target on ETYS still! go to CNEt Investor and find out.
ETYS is at $ 3 today. |
