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To: NucTrader who wrote (4225)	10/14/1998 8:19:00 PM
From: Alias Shrugged	Respond to of 14427

Change your cash account to a "margin" account, even though you may never borrow or go on "margin". According to SEC or somebody, shorts can only be done in margin account.

To: NucTrader who wrote (4225)	10/14/1998 8:38:00 PM
From: 007	Read Replies (1) \| Respond to of 14427

Actually, I am pretty sure that when you short you are using margin because you are borrowing the shares and the transaction is treated as a loan. You will be charged interest on your short until you cover. LU was a superb short today as it went all the way up to the neckline and back down 3 points. OO7

To: NucTrader who wrote (4225)	10/14/1998 8:59:00 PM
From: Slava Chechik	Read Replies (2) \| Respond to of 14427

re: Margin account. You have to open a margin account to sell short. Margin interest will not be charged if you have sufficient cash to cover the proceeds received from the sale. If the proceeds exceed the available cash in the account, then margin interest will be charged on the difference. So, if you sell 10k worth of stock short and have a 10k in cash on your account as of today close you would not be charged interest. If the next day position moves against you and stock worth 11k you will be charged interest on 1k. And so on. Also if you are long stock and did not buy it on margin do not let brokerage move it to a margin account. It could be borrowed for short sales. I hope it helps. Slava Chechik

To: NucTrader who wrote (4225)	10/14/1998 9:12:00 PM
From: waverider	Respond to of 14427

Nuc. A margin account does not mean your positions in it are funded by borrowed money. It is a category that allows long positions to be lent out for shorting by others. If you don't want your stock shorted, specify that you want them in a cash account. As far as my broker goes, they will not let you buy options in a cash account. Must be margin. It does not mean I'm borrowing the money to buy the options, it is just a category for the type of positions I have. Same for shorts. They have to be in a margin account. Hope that helps. <H>