To avoid a margin call, it is important to understand how margin trading works and the formulas that
To avoid a margin call, it is important to understand how margin trading works and the formulas that are used to calculate the amount of equity required in a margin account.
Key Terms to Know:-
Margin Account: A brokerage account in which the broker lends you funds to buy securities. The margin account is a combination of both your own funds (equity) and the funds borrowed from the broker.