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VExplorer (96.68)

Unexpected marging call

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August 04, 2009 – Comments (5) | RELATED TICKERS: EDC , FAS , FAZ

I recieved unexpected marging call yestoday. Broker asked for $X. At the morning, I transfered money. My total position was clear to neutral. And BOOM! Another marging call! For $6X. It looks like brokers are changing available margings on some short positions. JIMHO: it is result of massive closing of leveraged long positions. Broker just has asked fee for additional risk. Now he has not had enouth shares on client account's. As result broker has changed marging. It was not a problem for me, but I see it as bearish alarm. So, I modified my position and now I'm near "all-in" short.

5 Comments – Post Your Own

#1) On August 04, 2009 at 9:16 PM, portefeuille (99.96) wrote:

Interesting spin you are giving to this story. So now a margin call you receive for your short positions is a bearish sign because it is the "result of massive closing of leveraged long positions"?

Maybe it was just a margin call.

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#2) On August 04, 2009 at 9:26 PM, cthomas1017 (30.38) wrote:

sounds like someone might need a basic lesson in leveraged investing?  Last name's not Paulson by any chance is it? :D 

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#3) On August 04, 2009 at 9:33 PM, VExplorer (96.68) wrote:

May be it was just marging call. But why I recieved second one with request of much bigger sum if I not had extended losses and I transfered money for first one? And may be another clients have recieved these kind of marging calls too. And may be rally will continue some time on this. But I'm patient and I have room to wait.

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#4) On August 04, 2009 at 11:21 PM, VExplorer (96.68) wrote:

I don't thing Paulson needs any kind of lesson in investment. He has been smart enouth to take out money of taxpayers (READ: our money) for his indirect (READ: legal) benefits. Great deal. Regards.

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#5) On August 05, 2009 at 12:41 AM, cthomas1017 (30.38) wrote:

Touche!

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