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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (1347)	6/23/1999 6:12:00 PM
From: TraderAlan	Read Replies (2) \| Respond to of 18137

Eric, I've looked at QQQ and SPY and DIA over and over again but can't get past the spreads (often 1/4 to 5/16th). Suspect Amex keeps it that way to encourage hedging but discourage trading. Alan

To: Eric P who wrote (1347)	6/23/1999 7:30:00 PM
From: drsvelte	Respond to of 18137

RE Shorting A couple of other arcane things to consider regarding shorts: 1. If you short a stock, it must be done in your margin account. Logically, since you are selling a security with the proceeds of that sale credited to your account, your account should earn the appropriate margin/money market interest on those proceeds. Some brokers do, some don't. I have heard some acutally charge you margin interest to short! This can be significant if you carry large short positions. 2. It is difficult, if not downright impossible, to short most IPOs. Usually an IPO must be purchased in a cash account, thus there are few, if any, marginable shares to borrow. After an IPO trades for a period of time, shares can be bought on margin, increasing the portion of the float that is potentially shortable.