Lee:
<<< But for stocks, it's different. Using the broker's money with interest of course. Have you used stock margin and what is your experience? >>>
You deserve a very good answer to that question, perhaps Mr.
Michaels can say a few words.(G)
I started to use margin about a year ago. Veeerry carefully, as I seldom plunge right into something even if others guarantee
success. Now, in hindsight, I would encourage any investor to learn about using it as soon as possible. Being very careful with stocks other than ones we understand.
For example:
I left 40 shares of Dell, which had cost me $1780, and some money,with a full service broker about 4 years ago.
Well with the splits etc, that grew to be 20 or 30K,
and I started buying a few calls. And the account got to around $80k
So now I am "up" by say 78+k of "their" money and feel free to
risk a bit of margin. That would be 50% of the value of the Dell stock or maybe 12k. That's not much, but it permitted me to buy
20 more calls or perhaps 3 more leaps than usual by using only 1/2
the available margin.
Today that account stands at $240k with still only 640 Dell
behind it, the margin available being $28K
I tend to be about $5k into margin on that account:
Two days ago I wanted to buy 3 Leaps on Dell at $28, which would be on margin at $8400.
OK, so I don't use much margin in that account but it causes me
no worries as I can sell something and eliminate all margin in the blink of an eye.
Mainly it permits me to buy up to around $28k of calls when I think the price is right (usually only buy a few tho)
If I have any talent, it is to buy stocks at a low point.
And to 'nickel and dime' these market fellas by buying one or 3 calls at a time. Whatever works, you know. I'll take the .24mm.
( I don't have time to discuss my feeling toward margins on
other accounts so will do that later)
Regards
HOLY &*^^, Dell is up 2 1/2 ............
Sig.
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