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Tesla is currently trading at $400 per share. You expect the stock price to fall and decide to take a short position in the stock.
Tesla is currently trading at $400 per share. You expect the stock price to fall and decide to take a short position in the stock. Assume your broker requires an initial margin rate of 50% and a maintenance margin rate of 30%. You place $24,000 in a margin account with your broker and short sell 100 shares of Tesla at $400 per share. If the price of Tesla rises to $450 per share, how much cash could you withdraw from your margin account, while still meeting the required maintenance margin
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