Replies to post #16128 on 8000 Incorporated (EIGH)

[chainweight]

They show it on your account because you have a margin account. If you buy a stock $3.00 and above, depending on the stock, will depend on how much they'll allow you to borrow. A solid company, and you can borrow 4X the cash you have in your account. The riskier the security is, the less amount you can borrow. Etrade has marginal securities listed if you check. I made a killing using margin back when the Dow was having 600 point swings. That was insane.

[Magnusson]

be careful, you don't want to get caught on the down side and have to meet at margin call for a big lose.. very risky... done it myself on $4 and $5 stocks years back with good results.. also, if you did make money the broker charges you an annual percentage of what you borrowed monthy and will come up as a maintence call if you don't have a money account balance.... consider yourself safe from the grief of a risky trade.. you can't use it on pinks anyway