RE:RE:RE:RE:IRROCNorwood66 wrote: I don't know whther there is individual brokerage rules, however, at RBC BDI was not marginable until it hit $3, and then it is only marginable at 25% of the value - as of today my margin overhead imcreased by 25% of BDI's value. I know that some of my more blue-chip companies are marginable to 75%, and there are others only at 50%. This might be based upon value/liquidity/credit of account etc. I have never really looked into the reasoning because I don't use margin too much.
That being said, when you have a marginable stock, that stock becomes more attractive because the investor knows that when they buy that stock. that they can use a % more on top of that start to buy another stock. i.e. you get leverage. Beware of the pitfalls of using margin.
When a stock isn't marginable, it isn't levarageable and generally less deireable to the masses. So this is a good threshold for BDI. But it. must maintain this level or you will get margin calls (assuming you used margin).
I hope that this helps.
Takeaway - marginability is a good thing for BDI shares. BDI is now going to. go on a tear!
GTLA
Thanks for that breakdown! Much appreciated.