Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Robert V. Cavaleri who wrote (10720)	1/4/1999 2:04:00 PM
From: RealMuLan	Respond to of 16892

<<Does datek automatically give you a margin call, or do they wait a while to see if the stock rises above 5 dollars? >> Depending on your luck. Because sometimes they won't bother you, other times they do give you the margin call. I had both happened to me.

To: Robert V. Cavaleri who wrote (10720)	1/4/1999 3:28:00 PM
From: pae	Read Replies (2) \| Respond to of 16892

Robert, re maintenance calls: Not an expert, but it may help to know that 2 margin numbers apply to each stock: marginable percentage and maintenence percentage. Typical I believe is 50/30. The broker will extend 50% margin based on stocks value and make a maintenance call when the value shrinks below 30%. Schwab has been making margin%=maint% for the internuts both equal to 50%. Datek just makes them un-marginable. Looks like AMZN is no longer NS. A crude example of my understanding of maint calls (which someone will brutally correct if wrong in the slightest detail <g>): 100 shares of X per share price $100. Only item in account. available buying power 10000. buy 100 more shares of X. Now at 50% margin, can't buy more. Real cash balance: -10000. price drops 10%. value of equity= 20090 = 18000 plus real cash 18000-10000 = 8000 = account value 8000/18000 = 44% equity percent Still can't buy more, but margin call not yet. price drops to 71. value of equity = 20071= 14200 plus real cash 14200-10000= 4200 = account value 4200/14200= 29.5% below maint expect call Might be wise to look at Datek's online documentation to get a better/official idea of Datek's procedures. Regards, pae EDIT: check out datek.com Neat graph at the bottom does a better job than I did. Cheers!