How to maintain 4:1 leverage overnight?

Discussion in 'Retail Brokers' started by wizardx, Jul 28, 2005.

  1. wizardx

    wizardx

    say on the fourth day, you do nothing. can you hold the 4:1 overnight again even though your SMA is at $25K?

    what if on the fourth day, you sold $50K of stocks and replaced it with a different $50K of stocks. you are still at 4:1. can you hold this overnight?
     
    #31     Jul 29, 2005
  2. SMA is not reduced until you put on new positions or withdraw cash.

    If you closed 50k in the first stock you would receive a 25k credit to SMA. The new purchase of 50k in stock would reduce SMA by 25k. No net change.
     
    #32     Jul 29, 2005
  3. zdreg

    zdreg

    in what order are positions liquidated to bring you down from over 2:1 to under 2:1.
     
    #33     Aug 18, 2005
  4. LIFO
     
    #34     Aug 18, 2005