should i sell my margin account?

Question

i have this stock that is less than 2000 dollars, and Scottrade asks me to make it up to 2000 , otherwise, they will sell some of my stocks to make it a cash account

i am totally clueless; what should i do? should I send more money to make it up to 2000 dollars or just let them sell some of the stocks, and make it a cash account?

the stock that i have is warner brother company, the margin interest rate is about 10%

so is it worth to keep the margin stocks or sell them, so i don't have to pay for the interest rate?

i am totally clueless about margin fund, i opened an account at etrade a long time ago; and i don't even know how i ended up with some margin fund, because when i bought the stock, i used my own money.

you think that interest rate is too high? i thought that that is what every site is charging people

from what you guys have written here, it seems that it is better just to sell the margin stock or whatever it calls

Answer 1

If you think it's going to up at least 10% then bring it up to the broker's requirements. If not, sell the whole position. I don't see a reason to keep a small piece of it if you don't think it's a really great investment. My point is: do one thing or the other; don't sit on the fence with your money tied up in something mediocre.

Answer 2

interest rates of 10%. wow u need to make 11% in the stock to make a 1% profit. well if you believe its going to go up then pay up. if not, get out.

Answer 3

if you are totally clueless margin trading is...er...foolish imho

Answer 4

Send them more money.