Broker Allowed me To Trade More Margin Then I have

G

GotherL

My broker states on their website how their margin works.
  • 1 to 1 – Less than $500

    2 to 1 - $500 to $999

  • 4 to 1 - $1000 - $4999

    6 to 1 - $5000+
At the beginning, I had $1000 than lost on some trades and went to $400. However, my next trade I was able to trade SKLN for $2500 with just $400 cash balance and a 1 to 1 margin.

Is this legit? Loan sharking? Software bug?

Should I write them or is this how margin works?
 
GotherL said:
My broker states on their website how their margin works.
  • 1 to 1 – Less than $500

    2 to 1 - $500 to $999

  • 4 to 1 - $1000 - $4999

    6 to 1 - $5000+
At the beginning, I had $1000 than lost on some trades and went to $400. However, my next trade I was able to trade SKLN for $2500 with just $400 cash balance and a 1 to 1 margin.

Is this legit? Loan sharking? Software bug?

Should I write them or is this how margin works?
More...

What leverage your broker offers? Do they state on their website that they offer dynamic leverage or some kind of bonus leverage? You can definitely blame them in pushing you to take higher risk, what smells like a bucketshop
 
what is the interest they charge for margin? I noticed that on my account with tradestation. I went over so I expected a margin call, so I called them about interest and they told me 8.9% on margin. That's almost the same as some credit cards. no margin call, I was over by 20% and was still able to trade.
 
doggyfx said:
W
doggyfx said:
You can definitely blame them in pushing you to take higher risk, what smells like a bucketshop
More...
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Well, this the reply I got not surprising for a new broker who gotten bad reviews on youtube.

"Just so we understand better what you are saying. Are you saying you want to be compensated for bad trades you did because you should have had less buying power?

sincerely, support."

Pretty unprofessional response. Whether I made bad trades or not and whether their margin/buying power was screwed should be a separate issue. Anyways, I am done with this broker, platform was buggy af and never showed correct buying power so I always guessing how much I had in my cash balance.

Already opened an account with another broker just didn't wanna wire out the small amount out for the expensive fee.
 
Last edited:
Maverick74 said:
THAT is how pumpers work...they "mention" a ticker. It's not going to work bud.
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Yeah, I made that all up just so I can pump a stock. If I was pumping you'd think I would avoid mentioning I was losing money on it. Because if I was winning why'd I wanna flame my broker for giving me more margin? Nice logic bud!
 
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