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 : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (6889)	2/9/2000 11:47:00 AM
From: Jon Tara	Read Replies (2) \| Respond to of 18137

Dan, here's the scenario. Let's say you have 1000 shares of XYZ, worth $10/share. That's all you have in your account, and no cash. You sell your XYZ. 3 days from now, you will have $10,000 cash in your account. Now, you buy $1000 worth of options on ABC. Options settle the next day. You need to have $1000 cash in your account tomorrow to pay for the options. Unfortunately, you have no cash for another 2 days. You must either get a wire transfer to your broker VERY quickly, or you face a regulation T call and an account restriction.