nbdy,
the key answer lies in the available "buying power", regarding your question ("if I had 5K cash..do I get 10K cash...or so I have to owne a stock long as colatoral...or what??")
Well, if you have 5k cash real and available your buying ("selling") power is 10k (in general, besides special margin requirements for long stocks and shorting low priced stocks).
If for example you use half of your cash to buy marginable securities, say 2.5k volume, this security can be margined in turn, hence, 2.5k of your buying power is subtracted, leaving you with 7.5k buying power for the next positions.
So, there is not a way to increment the total margin position by subsequent buys over the initial given value,as every marginable security can be margined itself up to the 50% limit. After each turn, or on every position view, the total relations (Long stock value of marginable equity, available cash balance, buying power) is calculated.
Basically, you have buying power as long as the account ratio (marginable equity: total stock margin requirement base) is better than 50%, otherwise a seperate line "account ratio" showing a value under 50% appears in the portfolio view.
On the Datek homepage there is a description in the margin levels:
>50% -> positive buying power
>30% -> "good standing"
<30% -> margin call
<10% -> right for Datek to immediately closeout positions to raise the account ratio to good standing.
In general, there is no way to get your account ratio under 50% with opening trades alone - hence a market driven loss is necessary to get you there.
"with the summer volume coming down....shouldn't DATEK servers be more effiecient and not break down? it should be smooth runnin all summer...I think. Just like the last week or two have been with the slow volume....ya know??? anyways.....my account just got activated..but I haven't wired any money there yet....I guess I'll be started my adventure once I do that eh? see if my money ends up in my account :)"
Yes and no. With the general trading volume coming down, the load should decrease, but on the other hand, the ISLD Volume diminishes too, hence making you dependent on the remaining market (ie MM activity), whereas you would compete with other ISLD players in a stock with much ISLD activity.
(Generally I like stocks where a decent share is traded over ISLD market, because the executions are quicker and the Isld book viewer provides a good view on short-term activity). |
