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Suppose that a stock trader has bought $20,000 worth of securities. He kept $10,000 in an initial margin in his brokerage account and borrowed the
Suppose that a stock trader has bought $20,000 worth of securities. He kept $10,000 in an initial margin in his brokerage account and borrowed the rest from his broker. The maintenance margin is 25 percent. The value of the account has fallen to $3,500. The account holder has to come up with a variation margin of
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