Margin Call Calculator
How the Margin Call Calculator Works
The Margin Call Calculator is a user-friendly tool designed for investors, whether you’re a novice or an experienced trader. Here’s a step-by-step guide on how to use it:
-
Input Account Equity: Start by entering the equity in your investment or trading account. This is the value of your investments after accounting for any borrowed funds.
-
Input Loan Amount: Specify the amount of money you’ve borrowed on margin.
-
Input Margin Requirement: Enter the margin requirement, which is the percentage of equity required to maintain your margin account without a margin call.
-
Calculate Potential Margin Call: The calculator will instantly compute the potential margin call, indicating the level at which your investments would trigger a margin call.
-
Assess Risk of Margin Call: Use the calculated margin call level to assess the risk of a potential margin call in your investment or trading activities. This empowers you to make informed decisions to manage your margin account effectively.