Trading a Spread

TheInsider said: "I am interested in Buying one Stock and a Short position with another. My selection is based on the stock that I am long will out perform the other to the upside, and the short stock will under perform... a down shift in the market the short stock I have selected will fall both further and faster. My selection of the stocks are based on my personal analysis, and not technical. Risk, as I see it, is the technical make up of the market. To many investors chase a stock without knowing how to asses value, and that could drive the short stock up based on pure speculation (unfounded or not the effect is the same).. Anyone on this forum understand the margin requirement of this type of position?? Both stocks are in the same sector. My other choice would to be buying options.. Kind Regards"

HappyHarry said: "It almost always depends on your broker. They probably have pretty specific rules governing a trade like this."

TheInsider said: "I appreciate your input. Do you know anyone that has had any experience with this type of trading? Regards"