number 2 please

All examples ignore transaction costs and taxes. Sell 100 LAST short at $520; value of sale is $52,000. This is a margin transaction so you need to put up the margin. If the margin is 60% you need to deposit $31,200. This part of the account would look like: 1. Liabilities and Equity Assets 100X520 = 52000 52000 -6 = 31200 83200 52000 Short position 31200 Equity 83200 2. If the price of LAST increases to $550 you are now losing: if you bought back the stock you must pay $550 when you bought it for $520. Your account would look like: Assets Liabilities and Equity if maintenance margin is lower than this value you will get a margin Margin position= call