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.

Non-Tech : Datek Brokerage $9.95 a trade -- Ignore unavailable to you. Want to Upgrade?

To: dumbmoney who wrote (7462)	3/21/1998 7:26:00 AM
From: Phil Giouvanos	Read Replies (1) \| Respond to of 16892

To all: Does anyone know how to tell if a stock is marginable for DATEK from their site? I couldn't get a strait answer from the company. Thanks. Phil

To: dumbmoney who wrote (7462)	3/21/1998 5:08:00 PM
From: Rubber Man	Read Replies (1) \| Respond to of 16892

You answer is at datek.com

To: dumbmoney who wrote (7462)	3/22/1998 10:06:00 PM
From: RealMuLan	Respond to of 16892

<<Suppose I open a new account by depositing stock, no cash. I then short a stock. The market value increases. Am I charged margin interest on the difference between the short sale price and current market price (assuming I do NOT cover)? The answer is YES. DATEK charges 7% interest on any amount higher than your own cash balance (or stock worth), no matter you are short or long. In your case, suppose your stock worth $10,000. And then you can short $10,000 worth of stocks on margin. You will be charged 7% interest (compound daily, post monthly) on the whole amount of that $10,000, not only the difference. Some people said they haven't been charged interest for short on margin, I think they are just lucky, because the Portfolio Dept. in Datek is a mess. BTW, they don't even have the guts to say it clearly that they charge 7% interest for short on margin. They just charge it "quitely." Of course, Datek is not the only on-line broker does this. The other day, I called Trading Direct, they told me that they also charge interest (8%) for short on margin. E-trade did not do this before, but according to Datek, they start to do it now. I haven't asked them yet. If you always short on margin and hold the stock overnight, clearly, Datek is not a good choice. Good luck.