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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mr.Gogo who wrote (42570)	5/8/2011 9:59:01 PM
From: Spekulatius	Respond to of 78763

Who is Spekulatius ? <g>. My understanding is that if the margin is not sufficient that the position will be immediately liquidated. If the asset gaps down more than the margin coverage ratio (apparently ~7.5%), this would mean that the account holder would be responsible for covering the debt, if he can't it would be that the broker is liable, if the broker is broke too, the exchange would be liable. At least that is my understanding of the chain of events. Considering the volatility of silver, I am very surprised that accept 7.5% equity for margin, it seems way too low.