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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Vayda who wrote (15445)	9/24/1998 9:23:00 AM
From: Jon Koplik	Read Replies (1) \| Respond to of 152472

Jeff - bonds DO move slower than stocks (as a percentage of the underlying total value of the security involved), so the seemingly ridiculous leverage in these bond investments is not quite as crazy as it sounds. A 3% move in U.S. Treasury bonds is an extremely big day (happens maybe once a year or less), whereas I don't think a stock moving 3% in a day is really very noteworthy. If you want to trade Treasuries at an ordinary brokerage firm, I believe the current (Regulation T) margin requirement (even for you and me (i.e., mere mortals)) is only 2% equity ! But, most firms probably have a "house" requirement of maybe 5% or 10% equity. Still, it is a long way from the 50% requirement for stocks. Jon.