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 : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Esteban who wrote (648)	2/1/1998 6:01:00 PM
From: ----------	Read Replies (1) \| Respond to of 2241

Esteban: No margin charges assessed, as long as you have adequate collateral, be it cash or securities. (You pay no margin interst until you acutally have to borrow money.) I've never met a firm that pays interest on the collateral. (I typically use stock I own, since I continue to receive the dividends and any potential price increase. That, IMO, is better than Money market interest rates.) Besides, the brokerage firm is paying "broker call rate" for the money they loan you. If they paid you interest then they would simply increase the rate on borrowed money. It nets out fairly, IMO. TBR has had a fairly wide trading range lately. Your example is accurate.... depending on what your intention is. Regards, Doug