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GameOver22
Posted : Monday, June 26, 2006 12:11:31 PM
Registered User
Joined: 10/12/2005
Posts: 90
 Hey guys

When you open a margin account, how much does that mean i can borrow from the broker to trade with?

Matt
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pwalk
Posted : Monday, June 26, 2006 1:14:06 PM
Gold Customer Gold Customer

Joined: 12/24/2004
Posts: 33
 Normally, if you deposit $5000 (for instance), you can borrow $5000, for a total of $10,000.

But using the entire $5000 margin amount is 'pushing it'. If the position moves against you, the broker will require more cash from you pretty quickly (a margin call).
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BigBlock
Posted : Monday, June 26, 2006 9:17:49 PM
Registered User
Joined: 10/7/2004
Posts: 2,126
 If they flag your account as a day trading pattern, then the buying power will quadruple, but you will be require to have a minimun of $25,000 cash in your account. Any amount below that will resolve in maintenance calls.
For how you will be flag as daytrader pattern, please contact your broker - they should be able to explain.
good luck
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