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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Cosmo Daisey who wrote (192)1/5/1998 10:41:00 PM
From: Peter V  Read Replies (3) of 18691
 
Cosmo, thanks for the info. I would assume that one should have more than exactly half the amount of the sale price when they borrow shares to short to absorb a rise in the stock price. Am I correct that if, in your scenario (100 shares at $20, and $1,000 buying power in your account), that if the stock jumped to $22, you would face a margin call? I know brokers' rules vary, but do "most" brokers give clients a time period to provide more cash to avoid the margin call? How long is typical? btw, I never assume that information presented on a thread is "advice," but I understand your disclaimer. Thanks again.
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