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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: scoobypax who wrote (64620)12/18/2000 2:16:47 PM
From: Michael T Currie  Read Replies (1) | Respond to of 122087
 
> It's still limited to 100% on the money you borrow..

OK, let's make sure that we have our definitions straight. As an example, let's say that I have $20,000 cash in my account and that I want to short XYZ. Etrade sets a 50% margin limit on that particular stock, so I effectively have $40,000 with which to short. If I do so, and the stock subsequently goes to zero, I have made $40,000 on a $20,000 equity position (200%). Again, not at all advisable, but it is possible.