Short margin accounts Flashcards
1
Q
What is the formula for short margin accounts?
A
Credit - SMV = Equity
2
Q
What happens to equity when the market drops in a short margin account?
A
Equity rises
3
Q
For every $1 DECLINE in SMV, SMA increases by..?
A
$1.50
4
Q
What is the formula for SMA in a short account?
A
SMA = Equity - 50% market value
5
Q
What is the formula used to determine the market value where the account will be at 30% maintenance?
A
Credit / 1.3
6
Q
What it the formula for combined (long and short) margin account equity?
A
LMV + Credit - SMV - Debit = Combined equity
