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

To: LPS5 who wrote (10095)	9/3/2000 6:06:08 PM
From: Apakhabar	Read Replies (1) \| Respond to of 18137

LPS5, Why don't the broker/dealers just designate certain stocks as being non-marginable, the way Schwab and Datek and probably others do? And what is the purpose of lowering the buying-power AFTER the risk has been eliminated (the risky position has been liquidated)? If clearing firms for daytraders are worried about the risk, why don't they simply create a rule for certain traders that they can trade 2x their account intraday that their account is a cash account after the market closes (no margin for overnights)? I don't have a problem with any firm trying to control their risk, but it seems to me there are better ways to do it that serves everyone's interest. I would absolutely embrace an account for myself that was non-marginable afterhours as long as it updated my 2:1 buying power in real time during market hours. As it is, Southwest's policy has only given me one surprise margin call, but if for some reason I should want to carry a significant overnight position, I might sell it to myself in my Datek account and avoid the whole mess surrounding Momentum/Southwest's BP policies.