? about Shorting Stock / Margin Trading:
Example: I have a $6,000 margin account with $3,000 accounting for cash. I want to short sell 100 shares of JDOE that costs a total of $1500.
Although I have more than enough liquid capital to borrow the shares, do I still have to get $750 in a margin loan from eTrade even though I have $3,000 in cash?
OR
Do I just borrow the shares up until the cash value that I have before they call it if the cost gets near or exceeds the liquid amount that I have in my account?
Any clear explanation on how this works is appreciated.
Burned by sub-pennies, lessons learned from sub-pennies and my future profits won't be earned from sub-pennies.