Timeline for Why is there a maintenance requirement for securities in a margin account with equity 100%?
Current License: CC BY-SA 4.0
4 events
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Jan 16, 2022 at 1:42 | vote | accept | Joe | ||
Jan 12, 2022 at 19:50 | comment | added | Bob Baerker | He isn't on margin so he cannot be "short $1k of the maintenance margin requirement" is share price drops 60%. It's telling him that the margin requirement of his $10k position is $5k which leaves another $5k available for margin purposes (assuming that the broker is not higher than 50% Reg T). At an account value of $4k it would say that the margin requirement is $2k. | |
Jan 12, 2022 at 19:40 | comment | added | 0xFEE1DEAD | Let's assume the price of the securities drops 60% and you're left with $4k. Would you need to post margin as you'd be short $1k of the maintenance margin requirement? | |
Jan 12, 2022 at 16:20 | history | answered | Bob Baerker | CC BY-SA 4.0 |