My broker allows me to sell shares in the lots that they were bought.
For example, the fictitious NuCo, In., in order of purchase:
Lot A: 300 Shares of NUCO at $20 Lot B: 300 Shares of NUCO at $17 Lot C: 600 Shares of NUCO at $12 Lot D: 600 Shares of NUCO at $15
Let's say Lots A and B were bought using leverage and all others were bought with cash. I was able to buy A and B by borrowing because the majority of the account value sat in long term positions that that allowed A and B to be purchased well below to margin limit.
If want to sell lots C and D at $16, will I have paid my broker back, or still be using the borrowed margin account money?
The default sell order is FIFO (first in, first out).
This is a simplified version of a bad position I bought my self out of. The numbers were made up in order to show an average cost-per-share around $15.
I would like to sell off C and D to take the earnings and hold A and B expecting a recovery.
Since A and B were bought on margin, would they remain loans if I sold C and D.