Questrade Message regarding Tamarack-Valley-Energy-Ltd

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Can you provide insights on why I would receive the following message from Questrade regarding Tamarack-Valley-Energy-Ltd:
“Effective October 22, 2021, the margin requirement on long positions of symbol TVE.TO will increase from 30.00% to 40.00% and the margin requirement on short positions will increase from 30.00% to 40.00%.

We recommend you review your current positions to ensure you are not issued a margin call due to this change.

It is your responsibility to monitor your account and margin, and to deposit enough funds or close enough positions to remain in good standing. Otherwise, we will issue a margin call and we may need to close positions to satisfy the shortage.

We retain the right to require more margin at any time we consider necessary.”

Does this have anything to do with meme stocks or Robin Hood investors trying to play with the stock price?
Does this suggest any negative feelings toward Tamarack-Valley-Energy (I own lots of it; own it outright not a call or put).

Thanks.

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Asked on October 19, 2021 3:04 pm
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Private answer

Hi there,

Good question. Typically as stocks become more bought on leverage, the margin requirement will increase. I'm assuming there is an increase in activity with TVE due to rising oil&gas prices. Not sure if they are being targeted by communities like WSB - I just did a quick search and couldn't find anything but it is certainly possible.

If you didn't buy on margin then I wouldn't really worry about it. Keep in mind buying on margin is using borrowed money to invest - not necessarily options. You can have margin and not options. Did you borrow to invest?

Mat

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Posted by Mathieu Litalien
Answered on October 20, 2021 4:45 am
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