[dpaterso]

I actually was not sure if my 'idiotic idea' would even get a response let alone from you John BUT now that you have posted something on the subject this is what happens with me at GCI anyway (and as you know I've been margin called several 'majestic' times in my life):

Let's say that I had $5000 in my account and I used $4900 on a position. If the position goes against me and I get margin called the $4900 LESS whatever the loss on the position is will be what I have left to trade with after the margin call (like I said - seen it happen more than once)!!!

At Delta on the other hand you cannot let your free margin percentage drop to below 30%. If it does they will try to contact you to inform you to close come positions and if they can't get a hold of you then they close the positions for you automatically so this 'strategy' would not work there for the simple reason that you are really risking the loss plus a possible 30% of your margin (if they let it 'slide' to 0%).

See the difference between the brokers?

Now - it's not to say I'd take the chance of trading like this because - at GCI - all they'd probably do is not actually execute the margin call (it's just an order) UNTIL the loss was big enough for them to be able to take a substantial 'bite' out of your account before actually executing the margin call. On the other hand - if the margin call was 'automatic' i.e. the system immediately closed out your position - well - then this 'strategy' would have had merit wouldn't you say???