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re: Anyone see this story about CYNK?
Posted on 7/12/14 at 8:47 am to Iowa Golfer
Posted on 7/12/14 at 8:47 am to Iowa Golfer
Margin rates for shorting are determimed more by the security shorted than the borrower.
You aren't borrow in cash, you are borrowing the secuities, so the rate is determined by whatever large investors agree to sign a securities lending agreement. Then the broker adds a spread for his time and risk based capital.
You aren't borrow in cash, you are borrowing the secuities, so the rate is determined by whatever large investors agree to sign a securities lending agreement. Then the broker adds a spread for his time and risk based capital.
1
Posted on 7/12/14 at 10:40 am to TheHiddenFlask
If you short you'd be borrowing both the security and cash.
On shorts, you'd have both a Fed and House requirement. The house is usually more conservative than the Fed. Rates are solely determined by brokerage firm and based on size of account and credit risk. Individual securities have individual margin requirements based on a number of things, both Fed and house again.
So as an example my trading account indicates 100% margin equity currently. If I shorted a stock, a number of things change including, but not limited to, total market value, purchasing power of both marginable and non-marginable securities, available to withdraw, net cash/margin balance, margin equity and margin equity percentage.
On shorts, you'd have both a Fed and House requirement. The house is usually more conservative than the Fed. Rates are solely determined by brokerage firm and based on size of account and credit risk. Individual securities have individual margin requirements based on a number of things, both Fed and house again.
So as an example my trading account indicates 100% margin equity currently. If I shorted a stock, a number of things change including, but not limited to, total market value, purchasing power of both marginable and non-marginable securities, available to withdraw, net cash/margin balance, margin equity and margin equity percentage.
This post was edited on 7/12/14 at 10:49 am
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