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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: RJA_ who wrote (105452)2/17/2008 9:39:25 AM
From: TommasoRespond to of 306849
 
>>> you ever skip out on a margin call<<,

It's pretty unusual for a brokerage account to drop so fast that the securities in it don't cover the margin debt. Most people get sold out by the broker immediately when the margin drops below maintenance level (25-35%). Also, you will get what's called a Fed call that must be met immediately or the broker sells you out.

Short sellers are more likely to end up owing the broker than those who are long on margin. But even there, the broker usually comes out OK.