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Strategies & Market Trends : Margin Calls - Share The Pain
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To: daffodil who wrote (23)11/30/2000 11:48:05 PM
From: htransport  Read Replies (3) of 158
 
I'm not sure that you weren't correct when you originally said $333,333 would be the amount of stock you would need to sell on a $100,000 margin call. In your original post, you indicated the amount of stock you would need to sell is the amount of the call divided by the house maintenance requirement, i.e. 30%. $100,000 divided by 30% is $333,333, $100,000 x 30% is $33,000.

This last spring we found ourselves in a very bad margin call because we didn't fully understand margin. In order to meet the call, we were required to either send the margin requirement as new cash or sell 3 times as much stock as the margin amount.
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