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.

Non-Tech : Waterhouse Securities -- Ignore unavailable to you. Want to Upgrade?

To: margin_man who wrote (640)	8/2/1998 3:30:00 AM
From: dumbmoney	Respond to of 2076

Only cash can be used as collateral for short sale. Non-marginable options or stocks can't be used as collateral because they don't generate buying power. Marginable stocks, or marginable anything, can be used, though. Yes, your equity will increase/decrease depending on the current market value of the shorted security. You will have more buying power if the security goes down. See example above. Right. In addition, unrealized gains will be added to your cash account (unrealized losses will debit your cash).