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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: Louis Cornell who wrote (47312)12/5/1999 12:09:00 PM
From: Anthony@Pacific  Read Replies (2) | Respond to of 122088
 
Actually Reg-T rules require only a 30% margin requirement, on stocks over 16 5/8's......So on a 100 dollar short you only need 30 bucks of your own capital..if it drops to 10 uyou made 300%



To: Louis Cornell who wrote (47312)12/5/1999 3:32:00 PM
From: HairBall  Read Replies (1) | Respond to of 122088
 
Louis Cornell: but when you short, there is a 50% margin requirement, so you don't put up the full $20K for the 2K shares in your example (see below). Rather you put up $10K for the 2K shares,

Surely you realize the argument is the same for those that margin going long. So, you garner no points with your above analysis.

Because stocks fall much faster than they rise.

This is often no longer true in this mania.

Regards,
LG