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| Margin Call Formula: Margin Call = Debt | |||
Margin Call Definition The easy to use online Margin Call Calculator makes it easy to learn how to calculate margin calls for your portfolio with just a few key presses. The definition of a margin call is when an investor buys stock on margin and that stock decreases in value to a certain degree then the broker will issue a margin call to the investor to prompt them to either pony up additional funds or sell some of the stock bought on margin. A margin call can also be known as a “maintenance call” or a “fed call”. Using margin to buy stocks is essentially just a fancy way of saying that you will be borrowing money to buy stock. Be sure to read the examples of using margin given by the SEC for more information on the pros and cons of using margin to by stock. To use our free Margin Call Calculator just enter in the stock share price, initial margin percentage, and the stock maintenance margin percentage. How to Calculate Margin Call Let's be honest - sometimes the best margin call calculator is the one that is easy to use and doesn't require us to even know what the margin call formula is in the first place! But if you want to know the exact formula for calculating margin call then please check out the "Formula" box above. |