FormerXBC Inc XEBEQ

RE:RE:RE:Put it this way.

[ZouZS3]

Thank you so much for taking the time to explain this to me TT. I probably won't do it given how risky it could be but always nice to understand new things! I think I get it now. So there is different possibilities. 1) If you already hold a 4,000 shares in a non-reg cash account. You can buy an additional 1000 shares (20% more) and pledge 29,000 as collateral with a 5,800 outstanding loan. You don't need to pay anything because you have 1450 excess margin. If stock goes under 4.64 then you would get a margin call. 2) if starting from scratch, you buy 1000 shares with 75% of total, cost and cover the difference if the percentage goes below 75 + interests on loan and commissions. When you say " The real danger here, and I can't emphasize this enough, is that if the stock closes below $5, it may not qualify for margin anymore, in which case you would have to pay your entire debit, or sell all you shares and cover your loss, or do a little of both. are you saying that RBC would not approve a margin on a stock if it had a chance of not qualifying anymore?!?