If your equity falls below the minimum maintenance requirement of 50%, your ability to purchase more stocks is halted up until this purchase can be raised back to at least 50%.
Let us say that the aggregate (based on our margin ratings) market value of stock is Php 900,000 and outstanding margin balance is at Php 600,000, your equity is 33.33 % (Php 900,000 -600,000 / Php 900,000). Since it is below the 50 % threshold, a margin call will be issued.
NEWS
What is a "Margin Call?"
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2024-05-23 14:47:07