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loufah

Registered: Nov 2001
Posts: 1129

09-17-12 10:59 PM

Quote from losemind:

I just don't understand the last 2 sentences regarding margin and settlement:

All iShares ETFs are not margin eligible for 30-days from settlement, similar to mutual funds. For margin customers, positions will automatically become margin eligible in their account after 30 days from settlement.

You can't use those ETFs as collateral for margin borrowing until you've held them for 30 days.

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MoreLeverage

Registered: May 2012
Posts: 35

10-09-12 07:42 AM

Fidelity is pretty bad at having ETFs to short, although I haven't looked for these specific ones. They honestly have almost nothing on the short side (probably have their own stock loan business and don't give it to the riff raff for free).

I can't see why they'd make these ETFs non marginal like mutual funds. Everyone else gives you margin from day 1 on ETFs. Can anyone think of a reason the Fido-iShares deal might have been structured to include this limitation?

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