Serious errors found in RegT margin calculation formulas

[murray t turtle]

Imagine this: they demand a margin higher than what the stock costs ,
and additionally on top of it one has to pay also the interest for the margin loan!
Isn't that called usury ?...

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WELL= GOOD things, could be a warning hint LOL.
And that's why can easy lose more than original account amount\forced selling. Same reason why a repo -autodealer sells or short sale on home sticks you with a deficiency payment you owe the bank or broker or dealer .
Actually usury is not just eXcessive interest;
in some cases, its a word used for saving account interest[seldom if ever excessive,LOL]
As far as only poor using cash/LOL not right, + not accurate in stocks/ETFs or RE.
Most all USa long stock funds use cash with stocks.
Actually with the added risk, poor dont need nor should they get margin.
Good questions.

 

[Quanto]

As far as only poor using cash/LOL not right, + not accurate in stocks/ETFs or RE.
Most all USa long stock funds use cash with stocks.
Actually with the added risk, poor dont need nor should they get margin.
Good questions.

But a MarginAcct gives also opportunities and possibilities that are much less riskier; one just needs to know about these facts (ie. the right options strategies)... Some maths is required to understand these important features.
For example an options spread trade is not risky, BUT the funny thing is: such a spread trade is possible only in a MarginAcct (riches get it), but not in CashAcct (poors get it). --> crazy logic in this unjust crazy world

Same with Porfolio Margin Acct: many new possibilities with much less risk. But only riches can get a PMA...

 

[wxytrader]

You're confused because you don't realize you're talking to Fair-Put™ guy, who think all maths, that have been used by everyone forever, is just wrong.
It's all WRONG according to him!

Hey that was me! I was saying options prices are skewed towards the maximum of the SD spectrum not the mean, and are not being weighted for short term trends. I think tasty did a thing on it too.

 

[murray t turtle]

But a MarginAcct gives also opportunities and possibilities that are much less riskier; one just needs to know about these facts (ie. the right options strategies)... Some maths is required to understand these important features.
For example an options spread trade is not risky, BUT the funny thing is: such a spread trade is possible only in a MarginAcct (riches get it), but not in CashAcct (poors get it). --> crazy logic in this unjust crazy world

Same with Porfolio Margin Acct: many new possibilities with much less risk. But only riches can get a PMA...

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Another funny thing [maths, math] when i financed an insurance premium [30days pay rather then 6 months cash prepay] I paid a lot more than 1 month of than 6 month contract .
But that finance [margin] loan premium enabled me to not worry about a 5 of 6th month check refund thru the mail, with buying a newer used car.
HaHa easy to get math, maths wrong\ that 's why so many margined + put + call buyers + seller$ got wiped out in 1987

 

[Overnight]

Hey that was me! I was saying options prices are skewed towards the maximum of the SD spectrum not the mean, and are not being weighted for short term trends. I think tasty did a thing on it too.

You are not Fair-Put guy.

 

[taowave]

If so,I am sure you will be telling us all about your Lambo Veneno courtesy of the adjustments made in the WX pricing model

Hey that was me! I was saying options prices are skewed towards the maximum of the SD spectrum not the mean, and are not being weighted for short term trends. I think tasty did a thing on it too.