If account is cash-only (no margin), then broker cannot rehypothecate. True?

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Updated December 11, 2011

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If account is cash-only (no margin), then broker cannot rehypothecate. True?

December 10th, 2011, 10:34 PM	#1 (permalink)
maxplanck Chicago IL Posts: 19 since Sep 2011 Thanks Given: 12 Thanks Received: 4	If account is cash-only (no margin), then broker cannot rehypothecate. True? Can clearing rehypothecate?

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December 11th, 2011, 09:59 PM	#3 (permalink)
maxplanck Chicago IL Posts: 19 since Sep 2011 Thanks Given: 12 Thanks Received: 4	Received an affirmative from Bob Morse over on ET Forums - Best capitalized brokers which does not hypothecate? "In a margin account, even if you securities are paid for in full, they can lend them out. In a cash account, they can not."

December 11th, 2011, 10:09 PM

#4 (permalink)

bluemele

Honolulu, Hawaii

Experience: Intermediate

Platform: NinjaTrader

Broker: ATC/TT, AMP/Zen-Fire, AMP/CQG

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maxplanck

Received an affirmative from Bob Morse over on ET

Forums - Best capitalized brokers which does not hypothecate?

"In a margin account, even if you securities are paid for in full, they can lend them out. In a cash account, they can not."

Interesting....

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Last Updated on December 11, 2011

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