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Herbalife Ltd. Message Board

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  • golfrattt2000 golfrattt2000 Jan 17, 2013 11:11 PM Flag

    Optiontrader4u; Why and When is a margin call issued..?? Q: WHAT is a margin call..? (you don't seem to know)

    Hah, lol You don't know. Is this the 7th or 8th time i've asked you..? Never answered, just hiding in a corner peeing on yourself. Wimp.

    Come on, cop to the bullsheet claim that margin calls were going to force a $4 rise in the stock today.. Come on, wimp. WHAT is a margin call..??

    Do you realize that you referred to January 9th as the day that was forcing margin calls, yet that was the day the price was up about a a BUCK. Anyone here ever get a margin call because your position went up a buck..? Or DOWN a buck..?

    Pea, fess up buddy, tell me what a margin call is, stop hiding...

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    • I never traded them b4. If you sell them are u not suppose to have the capital in the account so cover your sell if you sell the option contract if the buyer acts on the contract?

    • I'm kind of new to trading (1 month) Isn't a margin call when your broker automatically closes your position because your account falls to the required maintenance? Example I buy $20,000 with $10,000 on margin. If the market value of stock falls to $10,000 they auto sell causing what's called a margin call?

      I am not sure but that's my understanding. Tell me if it's wrong.

      Also couldn't it work the same if I was shorting a stock and using margin. Then there's a chance if the broker is in short supply and people are wanting to purchase it, they could make a margin call and wanting me to give the shares back, which would close my position? Again, I am not sure about the latter, correct me if I'm wrong...

      • 1 Reply to justinmonk1234
      • Justin, thnx for inquiring since the idiot who claims to know won't answer..

        Yep, every stock has it's own maintenance level, which is affected by current volatility in the stock. It could be 50%, 35%, etc. Equities under $5 require a larger maintenance % due to its increased volatility..

        How do you get around it..? I had a TON of calls in the first 3 years. One, because i was using all of it and Two, i was trading poorly.

        Use it, but only use HALF of what's available to you. That starts you off with 66% equity position and the equity would have to fall a ton for you to get called...

        In the ideal scenario, you don't use it at all, but when you're account balance is low, you're going to grab on to all the leverage you can find...

        Justin, you aren't Optiontrader4u, are you...??? You may be...

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