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Strategies & Market Trends : DAYTRADING Fundamentals
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To: Dominick who wrote (12862)5/4/2001 5:20:33 PM
From: Apakhabar  Read Replies (4) of 18137
 
Dominick, they have every right to make whatever rules they want when it comes to MARGIN, which is, after all, a loan. Since when is a loan akin to a constitutional right? We're not talking about being denied margin based on sex or skin color or religion.

As for Bozwood's point about credit cards at the casino, that again is a loan the bank issuing the card is willing to make. For trading, under the new margin rules, you will absolutely still be able to double your buying power with the use of that same credit card assuming you have the credit. It may sound harsh but if a trader can't qualify for a line of credit for 25k then what is the basis for his claim that he must be given margin?

This isn't a matter of trying to protect traders IMO. Somebody has decided, for whatever reason (and it doesn't make much sense to me but I don't have all the information that they do) that these loans (margin) to traders with limited capital are too risky to undertake.

The more I think about it the less I think it's a big deal. Tell me the difference between getting denied a loan for a house because you don't have a big enough down payment, and these new margin rules. It's a matter of collateral.

I don't agree with the new rules, and I think they were hatched during the dizzying fall of the Nasdaq, which got the lenders thinking about risk for the first time in a few decades.
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