Use this simple initial margin formula: Initial Margin = (Initial margin requirement set by the authority) x (Total purchase price) Imagine you want to buy $20,000 worth of Company XYZ, and a ...

6 Basics of Variation Margin. Variation margin is the amount of money that is required to be posted by one party of a derivatives contract to the other party to fully collateralize the contract.

The maintenance margin requirement is used to ensure that the trader has enough equity in their account to cover potential losses on open positions. How to Calculate Margin Call – Example: ...

The value of the account is now $12,000, or 200 shares at $60 per share, and you’re $1,600 short of the 30 percent margin ...

Gross margin represents the amount of ... Gross Margin: Definition, Example, Formula, ... This figure can help companies understand whether there are any inefficiencies and if cuts are required to ...

In order to buy an individual stock, the margin requirement is 50%, meaning if you want to buy $10,000 of a stock, you have to put in $5,000 in equity.

Margin requirements are the minimum amount of capital that traders must maintain in their accounts to hold leveraged positions. This acts as a security deposit to ensure that traders can cover ...

One caveat to buying on margin is that you’ll also have a maintenance margin requirement, which requires you to maintain a certain percentage of equity in your account. When your portfolio falls ...

Because $400 is only about 16.6% percent of $2,400, the investor would have fallen below the 25% maintenance margin requirement and could be subject to a margin call.