However, it is not a fee but a portion of account equity that is allocated as a margin deposit. Use this Forex Margin Calculator on Your Website Our tools and calculators are developed and built to help the trading community to better understand the particulars that can affect their account balance and to help them on their overall trading. This generally takes place when the value of the securities in your margin account declines. Assuming a 50% initial margin and 25% maintenance margin, we can enter our numbers into the margin call price formula. Calculate the profit margin of making, trading products, or doing business in general. If the amount needed to satisfy the margin call does not exceed $1000, then the broker may choose . If you do get a margin call, make sure you have funds to protect your account. There is a formula that can be used to calculate how much a stock has to fall before a margin call can occur: Minimum account value = Margin loan / 1-Maintenance margin requirement. In this situation, the margin call is $3,000 less $2,000, or $1,000. Most forex brokers will send a margin call if the margin falls below a certain level. 2 Brokers and firms can set their own limits, as long as they meet the law, so you may find that many brokers require closer to 70%. 25% Maintenance margin: $10,000 / 25% = $40,000. A margin call is a brokers demand for a trader to deposit more money or stock securities to bring a margin account back to the brokers minimum requirement. Say you open a margin account with $15,000 of your own money. When a stock you own loses value, it could push you below the required maintenance margin. Subtract 1 from product of the previous step. If youre gonna use borrowed funds, make sure to use it on setups that you have a lot of experience and success with. This information is not intended to be used as the sole basis of any investment decision,should it be construed as advice designed to meet the investment needs of any particular investor.Past performance is not necessarily indicative of future returns. 30% Marginable equities: $10,000 / 30% = $33,333. Usually, there is collateral involved, such as stocks or other financial assets of value. You then borrow $15,000 from your broker as a margin loan so that you can purchase more shares. In the example above, the margin call price is $66.67 because: Therefore, at the price of $66.67, the broker keeps a 75% position in the security, and the investor holds a 25% position in the security: the margin call price. Stock Margin Calculator Enter the symbol and USD value of your equities portfolio in the form below to calculate your approximate available margin for stocks and ETFs. //