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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Return to Sender who wrote (87488)10/13/2021 4:12:00 PM
From: Sun Tzu  Read Replies (1) | Respond to of 95572
 
The 2000 era downfall was an example of unhealthy amount of margin. But I think over all those margin calls helped more people than they hurt b/c they took them out of the market early.

People should always be careful to trade within their limits - not just financial limits, but also their knowledge and trading skills.

As I said, IBKR doesn't issue margin calls; they just close your position without warning. Furthermore, their margin rates are not fixed and change based on volatility and the risks they assign to it, sometimes within the same day. And there are different margin requirements for holding overnight vs during the day. And you can even open a daytrading account which will have much lower margin requirements but must be settled before the close the of the day.

The combination of all that means that if you are on their systems, you are acutely aware of what margin is and what it means to your positions. And IMO, if someone is not aware of all that, then they should not be on margin even if they are with a more forgiving brokerage, because there is there no guarantee that the brokerage will remain as forgiving.

PS I am a fan of Leavitt videos. I often have the same read as them, but that doesn't stop me from learning something new from the way they analyze the market.