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Technology Stocks : ACLY- ACCELR8. Year 2000 Stock

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To: CalculatedRisk who wrote (1095)2/18/1998 8:24:00 AM
From: Andrew Abrams  Read Replies (1) of 1518
 
If you short 1000 shares of a $27 dollar stock, you do not get 27k in your account. Most brokers enforce the 50% rule. That is, 50% of the proceeds of a short sale are 'held' against the short position. This is to allow the price of the stock to move against you, without having to put up additional capital each day. If the stock goes against you enough to 'use up' the 50%, you will be asked to put up additional capital (margin call) or the position will be covered by the broker without your approval.

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