FWIW, I got this notice from my broker (E*Trade) Wednesday. I have to wonder if it is connected to the GameStop situation. The “holding” is not GameStop and I’ve not seen it mentioned in any of the stories on short trades, but it has shown sharp swings of prices in the last 3 weeks. I’ve held this stock for over 20 years.
***01/27/21 09:15AM ESTSpecial Margin Maintenance Requirement Increase
To effectively manage the risks associated with margin trading, E*TRADE periodically reviews and updates margin requirements.
The maintenance requirement for your holding below has increased. This may decrease your available purchasing power. It may also put your account at risk of a house call if your equity falls below the minimum requirement.
Account: XXXX-XXX
Holding ticker symbol:
Holding description:
New requirement: 100%
Old requirement: 60%
Please note: If you have uncovered options on this security, your requirements for those positions may also be affected.
Yes. That one is absolutely tied to the GameStop situation.
I used to play with margin all the time. It’s like using a credit card.
The financial markets have been spooked...and probably folks like E-Trade have been (secretly) ordered to tighten their margin requirements.
The GameStop saga was a _huge_ deal. It may well have threatened the stability of the entire house of cards financial markets worldwide.
The Kleptocrats are spinning plates in the air....thousands of different kinds of corrupt institutions just waiting to crash into a million pieces.