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| Here's what happened to me this year.
I was short SX7 and I owned an SX7 call at 40 cents above the short futures price I had. The market was rising and I had enough money in my account to cover the 40 cent difference. My brokerage firm started sending me "equity calls" they said it was different than "margin calls" so I had to keep sending money to them until I offset the short future position. I didn't lose the "equity call" money but I did have to send it in. In other words the long call didn't pay the margin call for me.
To make a long story short apparently just because I owned the call it didn't satisfy the brokerage firm.
I don't completely understand it yet. | |
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Using Options as Margin??
