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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: chip who wrote (1089)	4/30/1998 8:53:00 AM
From: macker	Respond to of 50264

each broker house is different in their individual requirements, but the main rules are simple: 1. a stock must be declared marginable 2. the amount of stock you can margin is 1/2 or 50% of the current value of your current position ex: you own 5k worth of dgiv that has a paper value of 30k, you can margin up to 15 thousand dollars worth of stock (50% of 30 thousand), if stock were trading at $5, you could margin another 3k of shares. 3. the margin account then charges you simple interest which is different at each broker house. most of the time though it is less than 1/2% per month, very cheap. 4. you have to keep that full margin value in your account from that point on. that is why i say be careful and only margin say 10k worth, this will give you plenty of room to breathe and the stock comes down a little bit. you always have to maintain half of your equity position. if it drops below you get the dreaded margin call which means you have to take in cash or sell something to cover the call. hope this helps, if you would like i will try to explain it further if neccesary. macker