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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (11799)	9/1/1998 12:27:00 PM
From: view	Read Replies (1) \| Respond to of 14631

Most brokerage houses they limit at 5 for going margin. My brokerage allows up to $4.0.

To: Robert Graham who wrote (11799)	9/1/1998 2:15:00 PM
From: Charles Hughes	Respond to of 14631

>>> I think there are rules about margin at these prices. I do not think stock can be margined at a price much less than 5. Am I right? I imagine that is why brokers like Schwab issued margin calls. Or does this only apply to new short positions? I do not short. Instead I use PUTs. <<< I think at this level you can't either margin or short this, at least where I trade, nor write puts below five. That may not always be true, I don't know. These are good rules that help take the volatility out of a beaten down stock and give it and it's investors some quiet time. You may be right about shorts being attached to their positions. However, the punisment for being wrong with a short is great, so they are out fast when wrong anyway, normally.