Datek Brokerage $9.95 a trade Message Board

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Non-Tech : Datek Brokerage $9.95 a trade

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To: Jon Normile who wrote (7490)	3/24/1998 12:54:00 AM
From: dumbmoney	Read Replies (1) of 16892

Thanks for the response. << I hope this explanation clarifies our procedures and answers everyone's question. >> Actually it raises some new ones... << Second, the customer has to devote money as collateral on the original stock loan. When the money is collateralized, it is not available to receive interest. To reflect this, the proceeds of the sale are deducted from the real cash value again. >> Why do you deduct 100% when only 50% is required for margin? << A customer has the a portfolio with the following equity: Real Cash = $10,000 Available Cash = $10,000 Buying Power = $20,000 Long Stock Value = $0 Short Stock Value = $0 >> In your example the customer doesn't have any marginable stock for use as collatoral. This is not the typical case. Could you please re-run the example assuming he has $20,000 in marginable stock. Thanks again.

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