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Pastimes : QQQ & DIA - chat & chart

QQQ 632.08

+0.5%

Nov 3 4:00 PM EST

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To: Jon Khymn who wrote (714)	9/18/2003 1:37:58 PM
From: James F. Hopkins	of 795

It would look like shorts would have more reserves, but it don't work that way. The money that comes in goes in a special account, that's not yours to use. And it takes Margin to short..or reduces your cash, ( buying power ) ...you can even get a margin call when short.. Margin Requirements The minimum margin requirement is 50% of the purchase or short sale price for initial transactions, with a minimum of $2,000. The percentage that the investor is required to deposit is set by the Federal Reserve Board and can change from time to time. The amount required is frequently referred to as the "RegT" percentage, and RegT applies to each new margin purchase the customer makes. ---25% mantaince except some brokers can set that higher ie waterhouse is 30%..& the money that came in from the sale is not part of your margin balance, it stays in a special account and is marked to market on Fridays..if your ahead that amount will go into your account, if your behind that amount will be taken out..if you don't have any to take out and are using all your margin to short you could get bought in before you know it..they do not have to wait the 3 days.. --- more on it at fool.com Jim

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