Hi there, I could sure use some help here. I purchased 97 shares near closing today and didn't see the order go through so I purchased another 97 shares and as soon as that went through BAM! the other order went through. Because its a margin account 97 shares got leveraged. It put my buying power at $496.67. I never leveraged before and not sure I understand everything correctly. The market closed before I could do anything. I'm going to post screen shots below. anyway here are some of the questions I have if someone can shed some light on this for me. 1-How the HELL can I get of this alive without loosing my shirt? 2-What happens if the stock price opens lower then closing today with my buying power being so low? 3-Should I sell 97 shares at the opening of market tomorrow? 4 -If for some reason I get a margin call can I just sell 97 shares and would this bring me out of leveraging? 5-What would you do? View attachment 16830
Hi Soda. 1) It's not that bad. 2) I believe margin calls are based on end of day numbers, not instantaneous, so you have some time to breathe. 3) Maybe. I wouldn't panic. Just sell the shares at the first reasonable opportunity. 4) If you get a margin call, you can sell the shares at a loss or they will do it for you whether you want to, or not. 5) Don't panic. You may have a bit taken out of your nest egg or you may get lucky and make a little money. This isn't that big of a problem, on the road of life. Some people use margin all the time so I wouldn't be too concerned. Of course, you are in a situation where it is extremely difficult to make money because any down tick will knock you off the fence but, these days, we don't have a lot of down ticks. lol!
Thanks Tom, I really appreciate your help and advice. It actually turned out good. I learnt a lot about leveraging and I actually did some math if the price drops and I set a stop limit just incase. I did panic when I realized that two orders went through...lol. I learnt my lesson! You have a good day and again thanks for the advice.
