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

To: gbh who wrote (9060)	7/12/1998 1:24:00 PM
From: Mama Bear	Read Replies (2) \| Respond to of 16892

gbh, of course they won't let you write a check beyond your actual cash balance if all you have is cash in your account. That would be an unsecured loan, and I don't believe that brokerages make a habit of voluntarily issuing unsecured loans. Sometimes they do it because a customer wakes up with negative equity, but it's not their business. Brokerages do however issue loans secured by equity all the time. I think what you're missing is that in my example of 10k in equity, 19k in positions, you only need $9500 to secure a $9500 loan to buy securities. This leaves you with a real cash balance of $500, or half of your buying power. I'm looking forward to your report back on your phone calls to Discover and Fidelity. I'm pretty sure that you'll find they are happy to make loans secured by equities held in street name. Barb