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- 2011-7-2
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- 2014-6-28
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I don’t know what others do, but I equate the following values. I hate to remember long equations like the one above which I can derive logically in 15 seconds.
Lets say current stock price is x where he gets a margin call
300x 4000 = .30 x 300x
(4000 is the money that investor borrowed, so his equity today is 300 x 4000 which is only 30% of the total equity) |
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