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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: EL KABONG!!! who wrote (687)	8/20/2000 8:56:30 PM
From: Dominick	Read Replies (1) \| Respond to of 1426

The firm could protect itself by keeping similar short requirements as the margin account. However, a margin account is sort of like the overdraft portion of a checking account. That is to say, you can exceed your balance and go negative, or spend more than what you have. Ok lets go with that logic. First, if you're not exceeding your balance you're still subject to interest payments. Second, if the stock does goes against you, additional deposits would be required or the firm would start closing your positions. The same way they would in a margin account. And finally, a specific percentage of cash on deposit could be required. For ex. shorting $50K of stock requires $100K of cash/securities. Thanks, Dominick