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

To: gbh who wrote (9048)	7/11/1998 11:51:00 AM
From: peter michaelson	Respond to of 16892

gbh: Information: I've been writing checks at Schwab for 20 years, often dipping well below cash balance and utilizing margin. Peter

To: gbh who wrote (9048)	7/12/1998 12:12:00 AM
From: Mama Bear	Read Replies (1) \| Respond to of 16892

"I have had two other brokers that did checking, and for both you could only write checks against your cash balance. If you exceeded this, the check would bounce. " gbh, if I have account equity of $10,000, and hold positions totalling $19,000, I would have an available cash balance of $500. That's $20,000 buying power - $19,000 used = $1,000 buying power/2 = $500. That $500 is not technically coming out as a margin loan, although it will increase your debit balance. I don't know how Datek will approach it, but that's the way Waterhouse does it. Since Waterhouse values stocks on the last trade, I don't need to worry about something like a trading halt causing one of my stocks to be valued at 0 overnight, and causing a check to bounce. Barb