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To: Jill who wrote (590)	1/3/2000 6:28:00 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 8096

One of the things I didn't like about Fido was the inconsistency of their margin requirements. When I first bought QCOM in April, the requirement was 30%. Then later 35%. Later, I learned they had upped their requirement to 60%--further increasing to 80% if you have a "concentrated position" (as I have had in QCOM). Maybe now the requirement there is only 50% or 35%, but if past is prologue, they will again shift the requirement as suits their fancy, and they can impose the nebulous turbo-charged 80% concentrated-position requirement if they feel like it. It is very arbitrary. How can you make strategic and planned use of margin if they are always changing the ground rules? Before I left, they offered to "modify" the requirements for my "special case" (which I consider to really mean their special case of losing my commissions). I did not buy it, because I figured they could later increase the requirement on me if it suited their fancy.

To: Jill who wrote (590)	1/3/2000 6:41:00 PM
From: taxman	Read Replies (1) \| Respond to of 8096

Regulation T - A Federal Reserve Board rule that sets the amount of credit available to consumers for speculation through securities dealers and brokerage houses. The initial requirement is $2,000 in either fully paid for eligible securities or cash in your account. It requires that a firm cannot lend more than 50% of the purchase price on any margin eligible securities purchased. It also requires that all accounts maintain 25% equity ownership. assuming that this is an accurate representation of regulation t, a firm cannot lend more than 50% of the purchase price. so if your exercise price (purchase price) is $100,000 it seems you would have to put up $50,000 regardless of how high the underlying is. regards bizwizbang.com