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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: IGL who wrote (5889)	12/2/1997 3:01:00 PM
From: RealMuLan	Respond to of 9124

The margin call will differ according to individual portfolio. In my case, with Datek, the lowest margin proporation is 30%. If the value of my own money drops below 30% of my portfolio, then I am obligated to make up the difference. Otherwise, they will sell my stock without informing me. Give you one example: say you bought 1000 shares of xxx stock at $10.00/share, and 50% of the money ($5,000) is borrowed as margin. now the stock value drops to $6.5, your account value is $6,500 instead of $10,000, but you still owe your broker $5,000. So now your margin is close to 77% of your portfolio, you will have to send your broker at least $450 to bring your margin back to 30% of your portfoli value. But this is with Datek. If with E-trade, I think the lowest you can go is 35%. That means you will have to send in $775 instead of $450. Your broker usually gives you a warning and 3 business day for you to make it up. Good luck.