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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Apakhabar who wrote (8163)	5/1/2000 12:47:00 PM
From: OZ	Respond to of 18137

My example was meant to illustrate BP in real time, i.e. the moment the stock hits 40.... Does not matter. Buying power is not reduced intraday when the value of a held security goes down. If my account is 90k and I hold 40k in stock overnight, my buying power the next morning would actually be 140k reduced by (25% of 40 x 2), or 20k. So the next day I would start with 120k in buying power. Are they doing something "wrong" or does each firm have some choice in the matter? Either you are doing something wrong or the firm is exercising it's right to raise the Margin Requirement. I doubt that is the case since they are a daytrading firm and have much competition. I believe your example should be as follows: ((90K)-(25% x 40K))x 2 = 160K You do not use the "x2" until the end of the equation. Cybercorp has a good explanation on all the aspects of computing buying power on their site under "notices'. But it is not working right now. Seems to be an orphaned page. There method is exactly like the Pro-Trader method and I am sure your firms is not any different except perhaps the %of MR is slightly different. But the formula should be the same.