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

To: Jon Tara who wrote (9492)	8/14/1998 11:50:00 PM
From: doniam	Respond to of 16892

Good point Jon, I remember well that little problem the market had back in 87. At that time you could write naked index options with very little equity in the account. I had written some naked puts and bought them back at a pretty good loss on Friday. Had I waited until Monday my account would have been wiped out and the broker would be coming after my house. dwf

To: Jon Tara who wrote (9492)	8/15/1998 7:16:00 PM
From: poodle	Respond to of 16892

Well, Jon,I am just kidding, I do believe that neither you nor Datek employees are communists (well, may be former <g>). Why shorties like Datek? Because it allows to short. Why? because it is cheap broker (was cheapest) and so attracts inexperienced investors. Inexperienced investors like hyped stocks, that's probably one of the reasons why Datek has them to borrow. Good so far. Now Datek is making some bubbles nm. Datek knows that customers' bankruptcies wouldn't make anything good. Fine. Is there any other way? Why not to increase margin requirements for such balloons? For example, 99.99%? It is still marginable, right?<g>. Yes, it will require 2 times more cash/equity from shortseller, but still it would be possible to short. New margin req. should be N/A for already established positions, of course. Minimum equity in the account also may be increased. Comments? Have a nice weekend.