Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: d. alexander who wrote (4609)	7/5/1999 3:32:00 PM
From: Doug Coughlan	Read Replies (2) \| Respond to of 4969

This will take you to "Text of Regulation T of the Federal Reserve." Good Luck! 4tradestar.com

To: d. alexander who wrote (4609)	7/6/1999 5:36:00 AM
From: steve goldman	Read Replies (2) \| Respond to of 4969

Generally speaking.... on long positions, Long Market Value - Debit = equity. LMV * .50- Debit = Excess equity or what is called SMA. Twice SMA (2SMA)=buy power. ie...you buy 2000 ABCD at 10....total cost 20k. you should have to deposit 10k, 50%. but you depsoit 15k, leaving a 5k debit. equity = mv(20)-debit(5)=15k, exactly what you put in since stock hasnt moved. SMA = 50%mv (10) - debit (5)=5. buying power = 10. thus you can buy 10 more. 10 + previous 20 = 30 30k in long market value would require inital deposit of 50% or 15k, exactly what you have. all initial purchases must meet 50%. thereafter, maintan by reg T can be 25% on long and 30% on short, ***THOUGH, i think where Ameritrade might be adjusting is on their "house maintenance" which is often more restrictive than reg t. all firms have this since 25 and 30 doesnt give firm much room in the event of a catastrophic loss in your position. Regards, Steve@yamner.com