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Old 10-11-2009, 01:13 PM   #2 (permalink)
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Default margin requirements on stocks

hello dave,

i find your courses great , keep up the good work. I have one question on margins. if the stock i purchase on margin goes up, which creates instant equity or value, then why does my margin maintenance requirement go up also ???? it doesn't make sense that because I have a profit, more money is required to hold the position. kindly explain.

thanks ben
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