2. Margin Percentage (This tells you how much of the current value of your investments is your own m
2. Margin Percentage (This tells you how much of the current value of your investments is your own money):
Margin Percentage=EquityCurrent Value of Investments×100\text{Margin Percentage} = \frac{\text{Equity}}{\text{Current Value of Investments}} \times 100Margin Percentage=Current Value of InvestmentsEquity×100
3. Maintenance Margin Formula (This tells you the minimum equity required to avoid a margin call):
Required Equity=Current Value of Investments×Maintenance Margin Percentage\text{Required Equity} = \text{Current Value of Investments} \times \text{Maintenance Margin Percentage}Required Equity=Current Value of Investments×Maintenance Margin Percentage