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 : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Kurt N who wrote (1345)	7/3/1998 7:29:00 PM
From: Carl Yee	Read Replies (1) \| Respond to of 2506

Good question. I don't know the answer. I sort of assumed that if I shorted above 5 it was on margin and if it dropped, since I had a profit, it was still in my margin account. But to tell the truth, I have sort of a hard time figuring out exactly what they mean in my account details. So other than if I still have purchasing power and I still have unused equity, I sort of let the rest just sort of slide on by (G).

To: Kurt N who wrote (1345)	7/4/1998 12:40:00 PM
From: Q.	Read Replies (1) \| Respond to of 2506

Kurt, re. margin requirements for shorts, one discount broker I use requires $5 or 1/3 of stock price, whichever is greater, as the maintenance equity for a short position. This particular broker allows me to enter a short sale only if the stock is over five bucks, but of course I can remain short if the stock falls below five. If I short stock at $14 and it falls to $5 or $2 or even $0.0001, my margin capital situation is unchanged re. the maintence requirement. I recommend that you phone the 'margin dept.' of your broker to explain how it works for you. Further discussions of these issues should be carried on in our 'mechanical aspects of shorting thread': Subject 15252