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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (4322)	3/8/1999 10:49:00 AM
From: Dan Swartzendruber	Respond to of 4969

Steve, can you short in a cash account? I hadn't thought so, but I might be mistaken. If you can't, the real reason is that an IRA cannot be margin-enabled, since in a margin account, the assets are collateral for the margin loan from the broker/dealer, and Federal tax law prohibits pledging the assets in an IRA as collateral for a loan of any kind (this is referred to as a prohibted transaction, and could result in the IRA being busted [terminated, with all funds disbursed to you, with penalties]).