4. Margin Call Trigger Point: A margin call will occur when your equity falls below the required equ
4. Margin Call Trigger Point:
A margin call will occur when your equity falls below the required equity as per the maintenance margin. You can calculate the point at which a margin call will occur as follows:
Margin Call Point=Loan Amount1−Maintenance Margin Percentage\text{Margin Call Point} = \frac{\text{Loan Amount}}{1 – \text{Maintenance Margin Percentage}}Margin Call Point=1−Maintenance Margin PercentageLoan Amount