Higher Maintenance Requirement

[AJLightning]

Why do brokers charge more for these trades?

Additional 15% Ex: ASTI, JSDA, FSLR, HOKU, RACK, ICE, SWAT to name a few

I see somewhat of a connection in those stocks, but can't pin point it

And DNDN...additional 40%!!!

Oh, and CFHI, FICC & NEWC...100%

[Albert0373]

http://www.investopedia.com/terms/m/maintenancemargin.asp

Investopedia is your friend; use it. :)

[Albert0373]

To add:


Higher Margin Maintenance Requirements on Volatile Issues
The wide swings in intra-day trading have also necessitated higher margin maintenance requirements for certain stocks, specifically Internet, e-commerce and high-tech issues. Due to their high volatility, some of these stocks will have an initial and a maintenance requirement of up to 70%. Stocks are added to this list daily based on market conditions. Please call 1-800-TRADERS to check whether a particular stock has a higher margin maintenance requirement.
Please note: this higher margin requirement applies to both new purchases and current holdings. A change in the margin requirement for a current holding may result in a margin maintenance call on your account.

[aiki14]

Why do brokers charge more for these trades?

Additional 15% Ex: ASTI, JSDA, FSLR, HOKU, RACK, ICE, SWAT to name a few

I see somewhat of a connection in those stocks, but can't pin point it

And DNDN...additional 40%!!!

Oh, and CFHI, FICC & NEWC...100%

High beta = High Margin Maintainance requirement
It takes the risk away from the broker.

[AJLightning]

http://www.investopedia.com/terms/m/maintenancemargin.asp

Investopedia is your friend; use it. :)



Ya, your right. Didn't think of that place (even though it's in the favorites).
But I like to read it from you guys....you'all explain it better

Thanks for the response though....