Hello Stockaholics, Could someone help me how to calculate the margin for this? I don’t understand the math, and I would like to practice it in my paper trading account. If I want to increase my position in a stock, the share price is $10 and I need a margin deposit of 20% to open the position, if I put down $1000 how many shares can I buy? If I want to purchase government bonds, and looking for a maturity between 5-10 years. The initial margin requirement is 10% of the market value. The bond I selected is %115 with a face value of $1000, if I invest $1000 how many bonds can I buy given the margin requirements? If I want to purchase government bonds, and looking for a maturity between 5-10 years, the initial margin requirement is %10 of the market value. The bond I selected is trading at $115 with a face value of $1000. I wish to invest $1000 what is the total exposure and actual margin requirement I need? Thank you
Regarding the margin for the additional share purchase, there's insufficient information. In the U.S., Reg T margin is 50% for long positions but if you already own marginable shares, they can provide some of the margin for a new position. So the answer depends on your locale, the initial margin rate, how much you own in marginable securities and the amount of free cash.
