Hi all,
I short OXGN for the first time. But, I'm not yet able to understand the whole transaction. Especially, Margin call and Margin requirements.
I'm trading with Ameritrade. I short sell 1000 stocks at 2.48 and covered at 2.17 close to end of day. Initially I had 2500 in my account with Stock BP of 5,200.
Why I'm not able to sell short stock of $5000 ? why is stock BP more than 5,000 ? Isn't it suppose to be double of Cash available for trading ?
According to Ameritrade the Initial Margin requirement is 50% and Margin Maintenance is $2,500(1000x$2.5 since the stock is trading below 2.5)
When I was holding my balances were like this
Funds available for trading : 1250 (nearly)
Account Value was changing between 2300 - 2800.
Stock Bp : 890 ( but I'm not sure, I may be wrong with this)
Short balance : 0
So according to Margin Maintenance requirement I'm supposed to maintain $2500. Why I'm not issued with Margin call ? Can anyone please explain with calculations. Can I use that $1250 to short stock again ?
Sorry for being naive this is my first short trade. Thanks in advance
I short OXGN for the first time. But, I'm not yet able to understand the whole transaction. Especially, Margin call and Margin requirements.
I'm trading with Ameritrade. I short sell 1000 stocks at 2.48 and covered at 2.17 close to end of day. Initially I had 2500 in my account with Stock BP of 5,200.
Why I'm not able to sell short stock of $5000 ? why is stock BP more than 5,000 ? Isn't it suppose to be double of Cash available for trading ?
According to Ameritrade the Initial Margin requirement is 50% and Margin Maintenance is $2,500(1000x$2.5 since the stock is trading below 2.5)
When I was holding my balances were like this
Funds available for trading : 1250 (nearly)
Account Value was changing between 2300 - 2800.
Stock Bp : 890 ( but I'm not sure, I may be wrong with this)
Short balance : 0
So according to Margin Maintenance requirement I'm supposed to maintain $2500. Why I'm not issued with Margin call ? Can anyone please explain with calculations. Can I use that $1250 to short stock again ?
Sorry for being naive this is my first short trade. Thanks in advance