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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (1887)	12/10/1999 11:11:00 AM
From: Matthew L. Jones	Read Replies (1) \| Respond to of 19219

Yes, as a matter of fact, they do. Initial margin requirements are much greater than are maintenance margin requirements (in most stocks and in most brokerages). And as equity value increases, so does available buying power. Furthermore, intraday (or daytrading) buying power is greater yet at it requires even a smaller margin requirement. Any gains in one's account (whether realized or unrealized) increase one's buying power. Nevertheless, I have never advocated being fully margined and imagine that only fools are fully margined in a volatile market such as the one we are currently experiencing. Another topic, but related is the habit of many firms to raise the maintenance requirements without notice on stocks they consider to be "risky" or on "concentrated" positions. Matt