LogFAQs > #951009023

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Topic	Stock Topic 22
red sox 777 02/24/21 1:08:47 AM #389:	Lopen posted... Not really. If you have cash equal to the margin you're using, which is completely reasonable for such a small amount of margin used, you can just deposit cash to be a stopgap while your assets recover Also for all but the worst catastrophes if you're properly diversified you should have some asset that doesn't drop all that much. Like assuming I'd been margin called today I could have easily just sold some of my BP or BTI or DIS which didn't drop much. I'm sort of confused. If you have cash, why pay margin interest instead of using it in the first place? Keeping the cash in a bank account and paying interest for the margin loan seems strictly worse. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! <cite>red sox 777 posted [p:951009023] in Stock Topi... [t:79301581]...</cite> <quote>Lopen posted... </cite> <quote>Not really. If you have cash equal to the margin you're using, which is completely reasonable for such a small amount of margin used, you can just deposit cash to be a stopgap while your assets recover Also for all but the worst catastrophes if you're properly diversified you should have some asset that doesn't drop all that much. Like assuming I'd been margin called today I could have easily just sold some of my BP or BTI or DIS which didn't drop much.</quote> I'm sort of confused. If you have cash, why pay margin interest instead of using it in the first place? Keeping the cash in a bank account and paying interest for the margin loan seems strictly worse. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest!</quote> ... Copied to Clipboard!
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