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Pastimes : Asensio** King of the Shorts - LET'S RUMBLE! -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (223)1/14/1999 12:38:00 AM
From: Gerald Walls  Read Replies (1) | Respond to of 257
 
Do you pay interest on the value of the borrowed security if it's completely backed by cash?



To: Q. who wrote (223)1/14/1999 6:16:00 AM
From: Mama Bear  Read Replies (2) | Respond to of 257
 
John, I am familiar with the mechanics of a short sale, and the difference between a type 5 and type 2 account. I suppose it would have been more accurate to say that a margin account is required, rather than all shorts are on margin. The point of my post was to point out that there is no shorting allowed in a cash only account.

Thanks for an accurate description of how a broker treats a short sale in a margin account.

Barb


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