Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (181)	11/14/1997 7:44:00 AM
From: Dale Baker	Read Replies (4) \| Respond to of 226

This has been a very interesting discussion. I've been using more margin recently to take short positions, which I guard with tight stops. They have softened the blow of the general drop in long positions. I asked E*Trade for a better explanation of how they calculate margin. Their response was it's too complicated to explain in an E-mail so I should call. Well, that's difficult and expensive from the Indian Ocean. Forty-five minutes on hold will cost me $90 and I can't use an 800 number. Could someone here explain the general rules of margin calculation, specifically the relationship between margin long value, margin short value, "current margin balance" and margin equity balance? I understand net equity in my account, which I never let drop anywhere near a margin call. But I would like to fine tune my day to day position better with an improved understanding of margin calculations. If this is too basic for the thread, please E-mail me. Thanks and keep up the good work.