SI
SI
discoversearch

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.
Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: IceShark who wrote (65818)8/5/1999 9:03:00 AM
From: Mama Bear  Read Replies (1) | Respond to of 132070
 
"How do they supply margin at 3 to 1?"

IceShark, through a liberal interpretation of the 25% maintenance requirements. You have 10k, and buy 20k of ABCD. Rather than using all your buying power, this particular interpretation uses only 5k (20k * .25). There are also some firms which will do 10:1, but the traders there are required to have a series 7 license, and are 'trading partners' with the firm.

Barb