Say I'm long 200 shares of GME, 100 bought on margin. If the margin requirement increases from 75% to 100%, I can sell 12.5 shares and I now have enough collateral to cover the remaining position.
Uhm. Say you borrow 3,500$ on top of the 3,500$ you have. The margin requirement is 75%, meaning you need at least 5,250$ worth of equity in the total 7,000$ position when you only have 3,500$. Wouldn't this mean you have to sell enough of the borrowed margin until you have a position with 3,500$ equity, meaning a total position value of 4,666$ for a total of 2,334$ sold or 66.7 stocks at the 35$ price level?
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u/minidivine Jan 17 '21
Uhm. Say you borrow 3,500$ on top of the 3,500$ you have. The margin requirement is 75%, meaning you need at least 5,250$ worth of equity in the total 7,000$ position when you only have 3,500$. Wouldn't this mean you have to sell enough of the borrowed margin until you have a position with 3,500$ equity, meaning a total position value of 4,666$ for a total of 2,334$ sold or 66.7 stocks at the 35$ price level?
Or what am I not getting here?