The buying power $ number looks right to me, but I'm no accountant, what do you all think?
Equity = $124,034
Short sale reserve = $3264
Leaves available equity = $120,770
Margin Debt = $106,286
Buying Power = Avail. Equity - Margin Debt = $14,484
The Margin Maintenance % number does seem like it might be wrong, but I'm not sure on :
Equity = $124,034
minus short sale credit reserve = $3264
Avail. Equity = $120,770
Portfolio total = $227,057
Margin Maintenance = Avail Equity/Portfolio = 53.19%, not 54.6% CYTO has calculated.
As a check, if spent my $14,484 available buying power:
Portfolio total would be: $227,057 + $14,484 = $241,541
Margin debt would be: $106,286 + $14,484 = $120,770
Avail Equity stays at = $120,771, as debt and portfolio incr. equally
Still have short credit reserve = $3264, to buy back shorted stock.
Avail Equity/Portfolio = $120,770/$241,541 = 50% meaning I've used all my available buying power.
Hey CYTO, back to the maint % formula.....again. My head hurts after that, now I know why I don't do accounting!
Somebody else (V1?) check our figures please!!
Now, if the shorted stock goes up, do we have to increase the short credit reserve, and reduce the available equity to cover the increased cost of replacing the borrowed shares? That's where this really gets complicated. By the same token, if the shorted stock drops, can we reduce the reserve and increase available equity on a daily basis?
I can't think about this anymore !@#$$%^&*()! ...... later,
Rman |
