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

To: dpl who wrote (7504)	3/24/1998 2:41:00 PM
From: bluejeans	Read Replies (1) \| Respond to of 16892

reread post 7490. sure looks like datek is charging interest on a short. maybe I am not interpreting his example correctly.

To: dpl who wrote (7504)	3/24/1998 4:47:00 PM
From: RealMuLan	Respond to of 16892

<<I hope your making a joke.When you buy on margin you are borrowing money.You create a debit. When you short you are creating a CREDIT.I have never heard of paying interest on a credit balance from a short. dpl, for Datek, the debit and credit means exactly opposite thing as in general accounting terms. When you buy long and use the margin, Datek loans you the cash and charges you 7% interest. And when you sell short, Datek loans the stocks borrowed from other people's margin account, and also charges you 7% interest. So Datek gains 14% interest on every dollar they loan out, assuming that dollar worth of stock has somebody to borrow for short. So Datek is very happy when you go short because they can earn double interest on the same amount.