I just called my Etrade broker and he said that
- as long as I have even $1 borrowed on margin, then all the shares on my account can be loaned out. If I cover my margin to $0, then Etrade will not loan any shares. You can have a margin account (to be clear, not a problem), just be borrowing $0. Then everyday they will adjust their loan shares available.
- He never heard of putting in a sell order of shares (also took awhile to explain) at a high price. He had to go ask someone else. He came back and said, that is irrelevant, doesn't matter. The only thing that matters is that you have $0 on margin.
- He had no idea if this is Etrade policy only or if other industry brokers have the same practice.
On posting this to yahoo mb, OK I'll post first and have you add on to that discussion.
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