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Non-Tech : MB TRADING -- Ignore unavailable to you. Want to Upgrade?

To: Mr_Merck who wrote (3328)	1/13/1999 10:26:00 PM
From: Wayners	Respond to of 7382

Reg. T and rule 2520 are only allowed to be calculated at the end of the day--not intraday. Whether you violated Reg. T and/or rule 2520 depends on what your buying power was today based on the positions you held at the close yesterday (1/12) if any and whether you exceeded either of those amounts. Under Reg. T., your buying power was BP= (C-(S.5))2 where C was your equity at the close on 1/12 and S was the value of all your marginable securities that you held at the close on 1/12. If you exceeded your BP you will get a Reg. T. margin call only if you held the position(s) past the close today on 1/13. Since you closed the position(s) you cannot get a Reg. T. call. Under rule 2520, your day trading buying power was BP=(C-(S.25))2 If at any one time today you were daytrading an amount in excess of this buying power, you will get a margin call under rule 2520. You would get called for 1/2 the amount you exceeded the BP by even though you closed the position at the end of the day. If you exceeded the Reg. T buying power at anytime today daytrading but didn't exceed the rule 2520 buying power, you will only get a rule 2520 margin call if you had a net loss for all of your daytrades today. The amount of the margin call is equal to the amount of the net loss. The amount is due even though you closed the position at the end of the day. This was a good exercise for me. Hope it made sense to you.