Shorting? how long can you wait
Message ID: 42907
Posted By: al_petrofsky
Posted On: 2003-09-17 09:15:00
Subject: Re: Shorting? how long can you wait 2 co
Recs: 4
> Generally speaking, as long as you like.
No, it's as long as the margin clerk will let you. For example, I'm short 100 shares of SCOX in a small account with National Financial Services (NFS), whose house requirement is that I have collateral on deposit with them with a value of at least 180% of the current value of the SCOX. If space aliens cause an IBM executive to state they will be paying SCO $3 billion, the price could jump to $200, and I would receive a call demanding I deposit more collateral to get me to $36,000. If I can't come up with it, NFS will "buy in" (opposite of "sell out") my position at the top of the market, and I'll be screwed.
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Posted By: al_petrofsky
Posted On: 2003-09-17 09:15:00
Subject: Re: Shorting? how long can you wait 2 co
Recs: 4
> Generally speaking, as long as you like.
No, it's as long as the margin clerk will let you. For example, I'm short 100 shares of SCOX in a small account with National Financial Services (NFS), whose house requirement is that I have collateral on deposit with them with a value of at least 180% of the current value of the SCOX. If space aliens cause an IBM executive to state they will be paying SCO $3 billion, the price could jump to $200, and I would receive a call demanding I deposit more collateral to get me to $36,000. If I can't come up with it, NFS will "buy in" (opposite of "sell out") my position at the top of the market, and I'll be screwed.
------------------------------------------------------------
The text of this Yahoo Message Board post has been licensed for
copying and distribution by the Yahoo Message Board user
"al_petrofsky" under the following license:
License: CC Attribution-NonCommercial-ShareAlike v2.0
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