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In a perfect world, a broker would notify you that the margin requirement and maintenance requirement are going to be raised, giving you time to increase your margin via adding additional cash or reducing position size. But it's not a perfect world and after a margin increase, many brokers would immediately liquidate positions to satisfy a margin deficiency,...


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For securities purchased on margin, the potential gain as well as the potential loss is increased. The higher the amount of borrowing (leverage), the greater the chance of the position's equity being wiped out and the less the amount of drop in the underlying assets that it takes to get there. A loss of 1/3 the value of a 3x ETF would wipe out the ETF's ...


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If this is a margin account, you can buy the short call to close and then sell the stock, incurring no margin charges. However, that's not the best way to close the position, regardless of the type of account involved. A Buy/Write order contains stock and an option. It can be done in a cash or a margin account. For establishing a covered call (assuming ...


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