| Stock value | Margin loan | Equity ($) | |
|---|---|---|---|
| Buy stock for $10,000, half margin | $10,000 | -$5,000 | $5,000 |
| Stock falls to $6,000 | $6,000 | -$5,000 | $1,000 |
| Brokerage firm's maintenance requirement: 30% | $6,000 | - | $1,800 |
| Margin call | $800 |
| Stock value | Margin loan | Equity ($) | |
|---|---|---|---|
| Buy stock for $10,000, half margin | $10,000 | -$5,000 | $5,000 |
| Stock falls to $6,000 | $6,000 | -$5,000 | $1,000 |
| Brokerage firm's maintenance requirement: 30% | $6,000 | - | $1,800 |
| Margin call | $800 |