Placing trades can feel overwhelming if you don’t understand the importance of calculating margin. A margin allows you to buy securities by borrowing money.
Learn how to calculate margin
To calculate the margin required for a long stock purchase, multiply the number of shares X the price X the margin rate. The margin requirement for a short sale is the regular margin requirement plus 100% of the value of the security.
Margin Requirement = shares x price x margin rate percentageExamples: