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To: AugustWest who wrote (462)12/3/1998 5:30:00 PM
From: zuma_rk  Read Replies (1) | Respond to of 20297
 
I agree that this only affects Schwab, but there's ALOT of folks doing $30 trades with Schwab.

Hope I'm wrong, but my gut tells me there's alot of mom-and-pop "Yahoos" out there that are gonna get their first taste of margin calls and have to decide which securities to sell...

Keep in mind, with 50% initial and 50% maintenance requirements (usually maintenance is 30%-40%), if you plunk down $5,000 bucks for $10,000 of AMZN, the *slightest* move south could prompt a margin call (provided you don't have any other collateral in your account). Long and short of it is, you got no more breathing room for volatility.

Just my humble opinion (hope I'm wrong)

RK