Margin calls next week, guaranteed!

[obama-lama]

Effective Tuesday 12/1/09:

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p119906.pdf

 

[Emini Maestro]

Yep, looks that way, for traders who do not keep up on such things, and keep open positions over time. Brokers love those margin call fees!

 

[Illum]

This is freakin stoopid. They should reverse split. Drive the costs down to offset this.

 

[mgookin]

It's because of the leverage. Don't read any more into it.

If you're trading 2x the inverse on the SDS, for example, then you should have 2x the margin you would have on the SPY. Completely logical.

 

[mastertrader12]

I agree.

 

[mindmerge2k]

yes does that mean short the market? cuz of liquidation?

 

[Smart Money]

Quote from mindmerge2k:

yes does that mean short the market? cuz of liquidation?

Its happening on both sides. Long and Short ETFs are being liquidated