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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: Dan Duchardt who wrote (11273)	6/5/2004 4:23:58 PM
From: Ira Player	Read Replies (2) of 12617

Dan, I don't think it's an issue of risk. It's an issue of defining a "cash" account as not using credit and a "margin" account as allowed to use credit. Use of credit introduces the concept of collateral. The "promise" of cash coming in within 3 days as payment for stock sold is 100% collateral for a loan against it. Therefore, is not counted against the other assets in the account in calculating margin. A cash account cannot use collateral to borrow, simply because by definition, it can't borrow. Ira Note: I'm an Engineer, not an Accountant...just my view on things...

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