Margin Account

[lucid]

Just got approved for margin. I asked for it for the ability to short stock. However, this is what I'm wondering: Now, if I buy stock, is it automatically bought on margin? Or do I have to specify that I want to purchase using margin? I want 100% equity in all purchases, but just want the ability to go short. Anyone know?

[bilgert]

Just got approved for margin. I asked for it for the ability to short stock. However, this is what I'm wondering: Now, if I buy stock, is it automatically bought on margin? Or do I have to specify that I want to purchase using margin? I want 100% equity in all purchases, but just want the ability to go short. Anyone know?

With ETrade and Noble Trading you have to specify. Don't know about anybody else.

[keithsan]

if i dont have enough money in the account it buys on margin automatically.

otcbb is non marginable so they wont let you buy those. will say, not enough in account for non marginable security.

[lucid]

Ok so it only goes direct on margin if, say, I have $2,000 in cash but want to take a $4,000 position? Before then it just does it all with cash unless I specify? Sounds good to me.

Thanks guys

[Raptorsrule]

SCREW margin........that stuff will get you killed. Cash is king......JMHO....

[lucid]

Yeah, but you need margin to short... soooo... I'll take it

[Raptorsrule]

no you don't.....

[lucid]

You don't...? I couldn't short until I got approved for margin... what am I missing here?

[keithsan]

i always have margin, sometimes it gets used, sometimes it doesnt, but i never plan on being wrong so...

[Raptorsrule]

use ameritrade and I can short all I want......you just gotta have cash to cover....

[lucid]

I use AMTD too, couldn't short w/o margin. Having it doesn't bother me... may as well have it if it's required.