I am not kidding on what I am about to say.
I bought FAZ last week to hold to for a short term. I did not realize it had a margin call. I guess Friday, Scottrade had a margin call and now I am out $7k....What can I do?
You have until the end of monday's session to square the account. I recommend you take small and calculated attacks thoughout the day until it's settled. If you wait for them to do it for you, It's going to be solid and decisive, and they may slam a 90 day restriction on you.. Which isn't pleasont.
Scottrade as of Friday (It was posted after hours) is not allowing any margin on 3x etfs. I have fas and tna, got a margin call on them also. You may have to sell some stock sooner than you had planned to cover your call. I would call your office (your closest will come up if you check the help tab, will have a tele. #, son't expect you will be the only one calling). I think they should have told us ahead of their decision to change the margin requirements. I am planning on telling them that. Will be interesting to see if any of the other brokers change their 3x etf requirements. Good luck..Pntrlady
"Scottrade as of Friday (It was posted after hours) is not allowing any margin on 3x etfs."
There is probably a good reason for this and it has nothing to do with the current levels. Look at the charts the last time the markets became volatile, split adjusted there were 100 point swings or more per day!
Faz did not drop anyway near a margin call.. You said you bougt faz a week ago..last week low was about 5 dollars and fridays close was equal to $5.60 after the 10 for 1 split taken into account.. Either you are a liar,moron or both..
First, I bought at 5.35 and I am not LYING!!! So, this is why I am so FREAKING confused why would I have a margin call..only thing I can think of..and other scottrade customers can attest to this is a bulletin sent on 7/10 saying margin calls on FAZ have gone from 70% (or something like that) to 100%..caould that have caused a margin call, but no email, no call, no thing..
Take it easy man! Scottrade is making it very confusing for its customers on teh whole FAS, FAZ reverse split. If anyone, call Scottrade morons, not the guy who is asking a question on thsi board.
Almost forgot. Did you buy FAZ BEFORE the split? If so, Scottrrade's accounting is all screwed up, and your margin call may not be real.
I bought FAs before the split and sold it the day after. I made a profit, but I have a margin call, too. It's balony. It's administrative and not a real margin call.
In this case, the margin call shows on-line, bt I didn't get an email as Scottrade normally sends out for margin calls. Nothing in surface mail either.
Again, call your broker to check what's going on.
Thanks for the advise..Yes, I did buy before the split and for my 1300 shares @5.35 the value now is $0.00 and not 7,400 or what ever it came out to...I hope you are right..I am scared to death at losing this $$
Do your screen also show FAZ# with the old share amount and 0.00 value??
You have 2 to 3 days to respond by to the margin call by either adding funds or liquidating (part of) your position.
Of course, you should have paid attention to the margin requirements in the first place, which for FAS and FAZ are 30% higher than for other stocks. I think that for every share in FAZ you need to have 70% of the price in cash.
This should help you determine what portion you will need to liquidate by the margin due date in order for you not to be liquidated by Scottrade.
You can keep the remainder of your FAZ position to hopefully make up for the partial loss wponce the by you expected decline starts kicking in.
My guess is that if you had:
$30,000 in your account,
you bought 1000 FAZ, and
you have a margin call for $15,000
So you sell 400 shares, but check with your broker. Just call them to discuss your situation, don't ignore them.