Margin Flashcards
1
Q
Margin
How do you calculate equity in a long margin account?
A
Equity (EQ) = Long Market Value (LMV) – Debit Balance
2
Q
Margin
How do you calculate equity in a short margin account?
A
Equity (EQ) = Credit Balance (CR) – Short Market Value (SMV)
3
Q
Margin
What is the formula for calculating total (combined) equity?
A
LMV + Credit – Debit – SMV
4
Q
Margin
What is Excess Equity?
A
Equity that exceeds 50% of the Current Market Value
5
Q
Margin
What is the minimum maintenance requirement for a long position?
A
25% of the Long Market Value (LMV)
6
Q
Margin
What is the minimum maintenance requirement for a short position?
A
30% of the Short Market Value (SMV)
7
Q
Margin
How do you calculate the margin requirement for a Leveraged ETF?
A
Leverage Factor x Minimum Maintenance Requirement
