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starglazer · 08-13-2006, 09:55 AM

To redliine: I believe you have to resignup.

To:freakshow
1) Temptation: You can use 50% more buying power from the money you have if you overuse your own money.
2) Credit Check: They did a hard credit check on me like if I was applying for a line of credit, credit card, mortage etc. It will hurt your score a bit but who cares really unless you want to mortage a new house within the next year.
3) Margin Calls: If you use their money and the stock falls below a certain price. For credential direct you can only use your margin on stocks over >$1.50 if the stock you buy falls under $1.50 you have 3 days to sell your stocks so that you give them back the money they lent you.
4) Option trading: I have no experience in this department but you basically buy a contract at a set price and you have to sell it at a certain time limit
5) Shorting/Selling shares you don't have: Sometimes this strategy works great. NORTEL (NT) has been shorted for years once the .com market crashed. SHorting means you believe the stock will go down in price. Then you rebuy it later to cover the shares you sold.

To:McDick
1) Interest Rate: For CredentialDirect, interest rate is compounded monthly so just sell enough shares so that you gave them back their money. That way $0 INTEREST. If not interest rate is prime+1 (7%) just like a line of credit. Way cheaper than using a cash advance from VISA/MASTERCARD to borrow money where it is compounded daily mostly at 18.5%

2) Having a margin account does not mean you have to use their money. Just use the amount you deposit if you feel insecure with your money.

3) Most penny stocks are violatile. Sometimes the 3 day settling period can really screw you over. So if you think keeping a penny stock long term is a good idea, cool, but I'm not going to risk it.

08-13-2006, 09:55 AM	#116
starglazer NOOB, Not Quite a Regular! Join Date: Apr 2006 Location: Burnaby Posts: 29 Thanked 0 Times in 0 Posts Failed 0 Times in 0 Posts	To redliine: I believe you have to resignup. To:freakshow 1) Temptation: You can use 50% more buying power from the money you have if you overuse your own money. 2) Credit Check: They did a hard credit check on me like if I was applying for a line of credit, credit card, mortage etc. It will hurt your score a bit but who cares really unless you want to mortage a new house within the next year. 3) Margin Calls: If you use their money and the stock falls below a certain price. For credential direct you can only use your margin on stocks over >$1.50 if the stock you buy falls under $1.50 you have 3 days to sell your stocks so that you give them back the money they lent you. 4) Option trading: I have no experience in this department but you basically buy a contract at a set price and you have to sell it at a certain time limit 5) Shorting/Selling shares you don't have: Sometimes this strategy works great. NORTEL (NT) has been shorted for years once the .com market crashed. SHorting means you believe the stock will go down in price. Then you rebuy it later to cover the shares you sold. To:McDick 1) Interest Rate: For CredentialDirect, interest rate is compounded monthly so just sell enough shares so that you gave them back their money. That way $0 INTEREST. If not interest rate is prime+1 (7%) just like a line of credit. Way cheaper than using a cash advance from VISA/MASTERCARD to borrow money where it is compounded daily mostly at 18.5% 2) Having a margin account does not mean you have to use their money. Just use the amount you deposit if you feel insecure with your money. 3) Most penny stocks are violatile. Sometimes the 3 day settling period can really screw you over. So if you think keeping a penny stock long term is a good idea, cool, but I'm not going to risk it.