Quote:
Originally Posted by Finner
But for you to actually not be able to cover the margin it would have to fall more then 30%, (the margin requirement of most blue chip Canadian Equities). And most blue chip canadian equitites don't fall 30% short term.
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That isn't true though. You can be in a margin call in my above example. Which by the way was a real life example. hehe.
Getting called everyday by Etrade is not fun.
Actually you'd think i would have learnt my lesson with RIMM. Back in 97 I was shorting it and the stupid stock went from $92 to $140 in 3 trading sessions. I was in a $55k margin call. I was getting ready to sell my condo to cover the loss but it did a big tank job in the next 2-3 days and I was safe.