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

Discussion in Brokers

Updated December 11, 2011

3,809 views
1 thanks given
2 followers

Search this Thread

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?

Can you help answer these questions
from other members on NexusFi?

Hormuz Completely Closed: US Strikes Day 2, Iran Shoots …

Traders Hideout

Post-Summit Market Verdict: ES -1%, NQ -1.5%, 10-Year Yi …

Traders Hideout

Thursday May 28: GDP + Core PCE + Jobless Claims All at …

Traders Hideout

Warsh Confirmed 54-45 on PPI Day -- 97% Say He Holds in …

Prediction Markets & Event Contracts

Thanks Mike. Godspeed.

The Elite Circle

Best Threads (Most Thanked)
in the last 7 days on NexusFi

NexusFi site changelog and issues/problem reporting

8 thanks

Darmok and Jalad at Tanagra

1 thanks

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

Trading: TF

Posts: 2,543 since Jun 2010

Thanks Given: 3,803

Thanks Received: 2,842

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....

Reply With Quote

Thanked by:

Last Updated on December 11, 2011

NexusFi

About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Downloads - Top

no new posts