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Strategies & Market Trends : Technical Analysis - Beginners

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To: Richard Estes who wrote (9016)12/28/1998 5:46:00 AM
From: FR1  Read Replies (1) of 12039
 
I think I have finally sorted it all out. Basically, I did not understand that there had been a recent push by NASDAQ to have brokerage houses revise their margin requirements. The sudden change in requirements confused me but I think I understand it now.

It used to be that brokers would give you a 50% margin to buy stocks.

Not true any more.

The margin you are given now depends on what individual stock you buy. The margin allowed is anywhere from 30% to 70%. It's gonna make a mess out of the buying habits of margined accounts but it will make things safer for brokers.
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