At The Close by J.L. Lord
ARTICLE SYNOPSIS ...Stocks & Commodities V. 25:6 (98, 97): At The Close by J.L. Lord
New Margin Rules (Part I)
On April 2, 2007, the Securities and Exchange Commission (SEC) granted permission to the retail brokerage industry to adopt margin requirements in the style of those used by the Chicago Board Options Exchange (CBOE). For many investors, the new rules represent a significant addition to their purchasing power. It makes sense that these investors would want to know not only how they got the extra money, but what they are allowed to do with it.
WHAT IS MARGIN?
Whenever a trader initiates a trade, a brok...