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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: hitsoft17 who wrote (887)	3/3/2001 10:45:52 AM
From: Timelord	Respond to of 23153

O/T Brokers - I did the same in my IRA at Schwab a few years ago - traded with no available funds, then covered the trade the same day with a sale. It was intentional because I didn't know any better. My account privileges were suspended for a time. In my margin account, I recently bought into a margin call by accident, because I didn't realize what account I was in. Even though I covered the trade the same day, I received a nasty letter in the mail and my margin trading ability was suspended for the settlement period. The letter stated that I needed to deposit sufficient funds to cover the trade, and that simply raising cash by selling other securities (as you would in a normal margin call), was not satisfactory. It was fortunate in that I had intended to deposit funds anyway, but that could have been a big surprise if I hadn't. I believe the account would have been put on non margin status for at least 30 days. I think you're allowed 3 of these per year with warnings before they suspend your account. The cs rep said that it happens frequently, and that you should just call as soon as (ie the same day) you realize the error - they can simply move the trade to the correct account and you avoid any unpleasantness. Alex