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

To: Daniel Chisholm who wrote (229)1/14/1999 6:13:00 PM
From: Mama Bear  Read Replies (3) | Respond to of 257
 
"But why should a margin account be required for shorting?"

My guess is because brokers say so. <g> Do you recall the day that ENMD gapped up from 12 to 83? It closed in the 50s, more than 4x the previous close. How can you guarantee that you'll have enough cash to cover an extreme situation like that? Consult your broker, perhaps it could be arranged. I have never heard of it, but that doesn't mean it doesn't happen.

Barb


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