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Message Subject
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Possible Warning re: financial downslide?
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Poster Handle
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Financial Trader |
Post Content
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NO.
80% margin reduction means simply this.
In the past, in order to business on margin at any major borkerage, you must maintain a MINIMUM equity position (cash on hand) for $25k.
This has been in effect since I became a trader.
Again, margin is leverage (nothing more, nothing less).
NOW ... they have changed it and notified us that...
Effective June 23, 2010, we only need to have $5k equity position (cash on hand).
If u know anything about investment, this is NOTHING (investment wise).
It suggest that the reason they are lowering it is that they expect most people will not be able to afford the higher requirement in the not so distance future.
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