Maintenance margin (for the @CFA Level 1 exam)

Maintenance margin (for the @CFA Level 1 exam) walks you through the computation of the stock price level at which an investor will receive a margin call.

[@TracyMyers-v7z]

The way you explained this is exceptional!!! I was lost with the formula that was given in class that made you use the number of shares. Thank you so much for making it not as complex. Your explanation is greatly appreciated - GREAT job!!!

[@letmeexplaincfa]

What great feedback! Thank you very much!

[@ugravy3314]

You're the best CFA teacher I have stumbled upon, the way you patiently teach each and every concept so patiently is really mesmerising to watch. Thank you sir!

[@letmeexplaincfa]

Thank you❤️

[@EshaanTula-hq1ul]

amazing and lucid explanation sir , do you offer any paid course for cfa ?

[@letmeexplaincfa]

There is an option to join this channel as a member (requires payment) which gives access to a wider range of videos. You can find the upload schedule at: www.letmeexplain.eu

[@EshaanTula-hq1ul]

@@letmeexplaincfathat’s helpful thank you so much😊

[@ChanelleKurnik]

You're doing a fantastic job! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). What's the best way to send them to Binance?

[@letmeexplaincfa]

I really don't know

[@GrazynaPfalmer]

Thanks for the breakdown! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). What's the best way to send them to Binance?

[@letmeexplaincfa]

I really don’t know

[@ioannislazaridis4887]

The best explanation ever seen . Thank you very much ! A separate video to explain the ES_F margins would be very welcome and highly appreciated.

[@letmeexplaincfa]

Thank you so much for your kind words! I will try to record more videos in 2024 :)

[@chiweit]

Thanks!

[@letmeexplaincfa]

You’re very welcome👍

[@jimmygarcia1534]

Question if I borrow $2,000 dollars can I pay it all at ones in the next month or so ?

[@zyphou971]

Thanks!

[@letmeexplaincfa]

You are very welcome!

[@lazarus_8589]

Thank you I wasn't understanding this concept until this video

[@reetajain4264]

Hello can you explain if maintenance margin is fix of certain percentage of initial margin. Then margin call will be below that maintenance margin. In given question stock price is 80 Therefore initial margin is 80×50% = 40$ But maintenance margin is certain %age of initial margin i.e 40×25% = 10$ Therfore when price reaches to 80-10 = 70 broker should call... Then why ptice reaches to 53.33 we will take. I completely understand the formula and explanation but why we calaculate by this method because mm is fixed of initial margin.

[@letmeexplaincfa]

A 50% initial margin relates to the initial price of the stock ($80). Maintenance margin of 25% is all about the relationship between the margin account balance and the CURRENT stock price. If the stock price drops to 53.33, the loss of 26.67 will be deducted from the investor’s margin account, making its balance 13.33 (40.00 - 26.67). At this level it will equal 25% of the current stock price (13.33 divided by 53.33 is approximately 25%)

[@antonioromero878]

Beauty !