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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: TripleT who wrote (25329)	3/30/1999 11:43:00 AM
From: Mama Bear	Read Replies (1) \| Respond to of 122087

" My broker requires 50% up front cash and 35% margin -- not the 30% as stated in the primer." 25% is the Fed rule, and anything above that is a house rule, and likely to be negotiable. My advice is to never put yourself in a position to have to negotiate that. One of the great things about shorting is that you can use your margin buying power and pay no interest. That puts you 6 1/2 to 9% (depending on your broker) ahead of anyone using margin to go long. If you have significant equity in your account, you may be able to negotiate a short rebate on the interest the broker collect on the cash produced by the sale. If the short goes in your favor, it throws off cash, whereas a long only produces cash when you sell it. FWIW Barb