You clever with numbers?
Can somebody help me with my spreadsheet math on margins?
It's easy to figure equity, and margin call critical point, and I like to calculate if Q dropped from today's price down incrementally, what my equity would be. I also like to see what my buying power is and that is where that I get screwed up.
This is what I have that I think is good:
obviously total value = share price* #shares
equity = 1-(total owed/total value) or (total value-total owed)/total value
margin call price, when minimum equity is 50% = (total owed/.5)/number of shares held
percentage value drop to generate a call = (current price-margin call price)/current price
my available equity = (value*.5)/today's price
To this point I am okay but when I try to calculate my buying power, how much can I buy at today's price, I get screwed up. I can buy a number of shares = equity above 50%/today's share price, but that doesn't work because if I plug in that number , & buy it, then those new shares generate more equity, it appears I can buy half again more, which in turn lets me buy half again, and so on until... and that's wrong.
And so when I calculate a loss scenario, dropping the price incrementally and calculating share price approaching the 50% point and then subsequent loss in shares, I am not sure if that is maybe wrong too. I would hate to get a margin call, but it would be even worse if I had _miscalculated_ and the losses were greater than I thought. I'm playing this pretty close. I have come within 5/8 of a margin call in the past. I need to be sure about my calculations. |
