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Zecco.com » General Investing » Margin Trading » Maintenance margin call?
Last post 05-17-2008, 2:15 PM by Zecco Editor. 7 replies.
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  •  02-01-2008, 11:22 PM 22941

    Maintenance margin call?

    Locked
    Hi all,
    I am very confused why I received the following email from Zecco. My account does not even have the margin trading capability, and I wasn't involved in any margin trading. Does anyone know what is going on? Thanks.


    Dear Valued Customer,



    Recent trading activity or market value adjustment in your Zecco
    Trading account has caused a Maintenance
    Margin Call that should be addressed and may require your prompt
    attention.



    The margin call may be attributed to one of several issues
    occurring, including but not limited to, a drop in value in the securities held
    in your account which decreases the equity percentage of your account below
    required minimums; concentration in certain position(s) that require higher
    maintenance minimums; increased debit balances due to purchases and or interest
    debited against your account; and/or increased maintenance minimums on
    position(s) held in your account.



    Please review your account and take the necessary
    steps to bring your account current. For additional information,
    including Due Date, please refer to the Margin Call Summary under the Account
    Records tab of your Zecco Trading Account. If the calls are not settled by due date you may be subject to
    liquidation at the broker assisted commission rate of $19.99 or account
    restriction depending on the type of call.



    Please contact Customer Service at
    909-657-6655 or reply to this email with your full name and reference number should you
    need further assistance.



    Thank you for your immediate attention to this
    matter.


    Best Regards,


    Zecco Trading


    Margin Department


    909-657-6655










    Securities products and services offered through:
    Zecco Trading, Inc.
    2084 E Francis Street
    Ontario, CA 91761
    909-657-6655 Office
    909-657-6638 Facsimile

    Member FINRA SIPC
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    If you have received this email in error, please immediately notify
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    Thank you.
    ***********************************************************************

  •  02-02-2008, 6:04 AM 22948 in reply to 22941

    Re: Maintenance margin call?

    Locked


    Hello

    I just got charged margin interest in my account also and should not have been charged for margin at all.

    This happened last year also.

    Good luck

  •  05-15-2008, 7:15 PM 29177 in reply to 22941

    Re: Maintenance margin call?

    Locked

    Same thing here hon......zecco bought a stock for me at market after the price jumped up 400%.  I only have a cash account.  Still not understanding why they would buy a stock that i cannot afford and there is no money in the cash account for it.  also having issues with selling stock at a limit price and zecco dumped all of them at market.  major loss of money by zecco.

  •  05-15-2008, 8:48 PM 29184 in reply to 29177

    Re: Maintenance margin call?

    Locked
    BLONDYZ:

    Same thing here hon......zecco bought a stock for me at market after the price jumped up 400%. 



    Don't use the market order unless you are absolutely sure of what you are doing.  During Visa first day (right after their IPO), someone bought V for around $200 a share.  May be 3 years from now, V will be trading at the $200 price range, but not any time soon.  I hope that wasn't you who bought V at $200 a share.

  •  05-15-2008, 9:16 PM 29186 in reply to 29184

    Re: Maintenance margin call?

    Locked
    Don't look at Mastercard when coming up with that $200 figure. Visa's trading at a 32.7 PE and a 2.1 PEG, thus it's going to fall. I'd expect it to fall to about 25 PE or a 1.61 PEG within the near future as people get their senses.  MA is trading at a 27.2 PE and a 1.73 PEG. At 16.25% growth, it would take 1.5 years just to reach its current price level with a 1.6 PEG and about 5.1 years before reaching $160 per share. And that's if it continues to grow at 16.25% per year as it takes 4.6 years for it to double in value at that growth rate. It would take about 7.6 years to reach that $200 price level. I'd say unless there is some crazy speculation, you won't see it in any less than 5 years but it's very possible in 10 years. That's just my opinion. Now, we could have a severe recession, 5 years from now, and that would mean that wouldn't occur. Likewise, we could have a major bull market resulting in this rising towards $200/share quickly. Fundamentally, I don't believe it makes much sense in the short-term, but things sometimes don't follow fundamentals.

    Stardust:
    BLONDYZ:

    Same thing here hon......zecco bought a stock for me at market after the price jumped up 400%. 



    Don't use the market order unless you are absolutely sure of what you are doing.  During Visa first day (right after their IPO), someone bought V for around $200 a share.  May be 3 years from now, V will be trading at the $200 price range, but not any time soon.  I hope that wasn't you who bought V at $200 a share.
    Aqua

  •  05-17-2008, 7:21 AM 29275 in reply to 29186

    Re: Maintenance margin call?

    Locked

    Hello aquaswim47

    Market order vs limit orders guess that the person who's market order was filled at $200 has learned their lesson about using market orders.

    Good luck

  •  05-17-2008, 2:02 PM 29281 in reply to 29177

    Re: Maintenance margin call?

    Locked

    Frankly, folks, it is one thing to blame Zecco for their mistakes, quite another to blame Zeccor for YOUR mistakes.  When YOU place a market order, Zecco (software) looks at current price, compares to funds available, and if sufficient, SENDS the order (Zecco does not execute any order).  At that point, Zecco no longer has any control whatsoever.  The price you get executed at is YOUR responsibility.  And if your account does not have the funds to cover what YOU bought, Zecco will issue a margine call.  And if you do not meet the margine call, Zecco will sell your holdings at the market.  And if that results in a loss, it is the result of YOUR action, not Zecco's.  Read the agreements and disclosures YOU signed!

     

  •  05-17-2008, 2:15 PM 29283 in reply to 29281

    Re: Maintenance margin call?

    Locked
    Thanks for your very clear explanation of how a market order works Preacher. And with that, this thread is now locked.
    As usual, if you have a specific Zecco Trading account matter, please contact Zecco Trading customer service:
    Thanks,

    Zecco Editor


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