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

To: Dale Baker who wrote (183)	11/14/1997 7:55:00 AM
From: John Hunt	Read Replies (1) \| Respond to of 226

Dale, This link has been posted a couple of times on other threads and may help: Information on using margin savoystocks.com John

To: Dale Baker who wrote (183)	11/14/1997 10:18:00 AM
From: Tommaso	Respond to of 226

Someone else can probably correct me or improve or add to this, but roughly: For long positions you must initally have a 50% paid-up position in your account. For $1,000 cash you can buy long $2,000 worth of stock, or if you deposit marginable securities worth $2,000, you could buy another $2,000 worth. Not all stocks are marginable. Many brokerages won't let you margin a stock from a major exchange that is below $5 in price. Most stocks on the major exhcanges, including most NASDAQ stocks, are marginable. Your broker will tell which are not. For short positions (at least in my account) you must put up cash or cash equivalent worth 50% of the stocks sold short, and furthermore the proceeds of the short sale stay with the broker. If the short rises you must supply more cash. If it falls you can take out cash. Mine is set up to automatically borrow against the longs and to sweep gains into a government securities cash fund. There are other complications, but I think that's the basics. You can probably find a website that explains all in more detail.