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Strategies & Market Trends : The Options Box

QQQ 625.58

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Dec 11 4:00 PM EST

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To: Lost to Voodoo who wrote (5113)	9/18/2000 8:46:08 AM
From: Jerry Miller	Read Replies (1) of 10876

Hi LTV, here's how they explained it: "The Federal Reserve requires that you maintain certain account equity as long as you hold the marginable securities. If the market changes and a long position's value declines or a short position's value increases, you may be required to make a payment to maintain your account equity (the amount of cash in your account compared to the amount you borrow). For example, if you have purchased a security long that has a long requirement of 75 percent, you must have 75 percent of the stock's current value in cash in your account. If you purchased a stock short and the stock as a short requirement of 40 percent, you must have cash in your margin account equal to or greater than 40 percent of the stock's value. If you don't have sufficient cash in your account, the securities are automatically sold to pay the debit balance. See "Margin Calls: Maintaining Account Equity" for more information about meeting margin calls." quite a list they have too. too many to mention, but it just made me think that they might just see a "fall rally" on the way, and decided to get out ahead of the curve.

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