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You have a margin account with an initial margin requirement of 50% and a maintenance margin of 30%. You use your full margin to short
You have a margin account with an initial margin requirement of 50% and a maintenance margin of 30%.
You use your full margin to short 100 shares of TSLA at $180 per share.
1) Prepare a balance sheet after initiating that trade
Asset =
Debt =
Equity =
2) At what price would you get your margin call?
To solve this one, prepare the balance sheet at the time of margin call.
3) What would be your HPR if you had to lose your position at that moment (at margin call)
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