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Margin and Margin Requirements


Margin

When an investor borrows money from a brokerage house to cover part of the purchase of a security, an investor is borrowing on margin.

Margin Requirement (stocks)

The maximum percentage of the investment that can be loaned by the brokerage firm, is the margin requirement set by the Federal Reserve Board.

Margin Requirement (options)

The uncovered options margin requirement is the amount that an uncovered options writer must keep on deposit in his account to cover the naked option position. Based on current prices, the margin requirement is updated daily.

 


Best Months

Apr 2008:

 +224%

Mar 2008:

 +241%

Feb 2008:

 +341%

Dec 2007:

 +227%

Nov 2007:

+167%

Oct 2007:

+127%

Jan. 2007:

 +83%

Nov. 2006:

+122%

Oct. 2006:

  +71%

Aug. 2006:

  +74%

July 2006:

  +73%

Mar. 2006:

  +75%

Based on actual trades autotraded by major brokers

Uncovered SPY Options Signals
Past 2 Months

+338%

-0%

Our
Signals
Buy
& Hold

As of 5/17/2008

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Disclaimer: THIS INFORMATION IS INTENDED FOR EDUCATIONAL PURPOSES ONLY. RISK IS INVOLVED IN ALL STYLES OF MONEY MANAGEMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
   
 

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Risk Statement: Naked options trading is very risky, many people lose money trading and losses can exceed the amount invested.

 

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5/17/2008 - SV1
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