SHorting Stocks: Education/strategies/techniques Message Board

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Strategies & Market Trends : SHorting Stocks: Education/strategies/techniques

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To: Early Bird who wrote ()	3/1/1997 3:15:00 PM
From: Ulrich Santo	of 99

Shorting stocks on margin is really dangerous. I had $3.000 and was allowed to short for $6000. I sold short for $6.000. This money was reserved by my broker to buy back the shares later and I had to maintain 30% margin requirement= $2000 I had $3.000. When the stock rose to $6.900 (only 15%), i got a margin call. They reserved $6.900 to buy the shares back and my $3.000 declined to $2.100 and my margin to around %30. Is there somesthing wrong with this calculation or is this normal broker practice ? When the stock declined my buying power increased rapidly. Greetings Ulrich

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