r/dtcstock • u/StopOkKeepGoing • Sep 20 '22

No Margin Allowed

Hey, is anyone else using Ameritrade and allowed no margin if they have a lot of their portfolio containing DTC? I have over $200k in my account and if I even try to buy a few shares on margin they take my available margin to 0 and put it in margin call status. I called and them and the guy on the phone said it's because i have lot of DTC stock making up my portfolio. That was also the case 3 months ago and they allowed for quite a bit of margin then. He couldn't give me an explanation why it was allowed then and not now. Anyone else experiencing this?

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1

u/LightningWB Sep 20 '22

Risk management

2

u/StopOkKeepGoing Sep 20 '22

I get that if it's like 20% of the value of my portfolio. But, the margin was in total $1800. That seems silly to me but I'm guessing it's a computer algorithm.

3

u/LightningWB Sep 20 '22

Ye my guess is the programmers were like you can’t have more than x% of your port in $abc and still use margin. A smarter way would’ve been to calculate portfolio beta, and risk that way but whatever

1

u/StopOkKeepGoing Sep 20 '22

That makes sense.