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.
Пікірлер: 12
@ioannislazaridis48877 ай бұрын
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.
@letmeexplaincfa6 ай бұрын
Thank you so much for your kind words! I will try to record more videos in 2024 :)
@user-ol8ru4ww2w3 ай бұрын
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!!!
@letmeexplaincfa3 ай бұрын
What great feedback! Thank you very much!
@antonioromero87811 ай бұрын
Beauty !
@chiweit5 ай бұрын
Thanks!
@letmeexplaincfa5 ай бұрын
You’re very welcome👍
@jimmygarcia153410 ай бұрын
Question if I borrow $2,000 dollars can I pay it all at ones in the next month or so ?
@reetajain426425 күн бұрын
Hello can you explain if maintenance margin is fix of certain percentage of initial margin. Then margin call will be below that maintenance margin. In given question stock price is 80 Therefore initial margin is 80×50% = 40$ 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.
@letmeexplaincfa25 күн бұрын
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%)