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lesgetrich

02/07/18 11:16 AM

#92702 RE: MD-420 #92689

FYI. You're margin borrowing limit is a percentage of the marginable stocks you own. Each brokerage makes their own rules on what stocks are marginable. At Morgan Stanley, for instance, stocks priced over $10/share get 50% of their value while those between $5 and $10 get about 33%. Anything below $5 does not have any margin borrowing power. Consequently, if you own a stock that just dipped below $10 or $5 your margin credit limit goes down and you can get a margin call. It has nothing to do with what other investors are doing or whether you're green on all your shares.