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Pastimes : Asensio** King of the Shorts - LET'S RUMBLE!

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To: Andrew Martin who wrote (213)1/10/1999 3:22:00 PM
From: Mad2  Read Replies (1) of 257
 
All shorts are considered "on margin" due to the unlimited loss potential. This is why you can't short stock with a brokerage account that isn't margin enabled. The issue of how much cash need be allocated towards a given short position depends on both the brokerage account and the stock. With Datek and stocks that "marginable" they require 30%. In your past situation with EBAY your brokerage probably had EBAY in a no margin category requiring you to be able to cover with 100% cash. In this case even though the brokerage indicates the stock is non marginable, it still can only be shorted with a margin enabled account.
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