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You tell your broker to sell 1,000 shares@$100($100,000) and 50% margin requirement on short sales. You have $50,000 T-bills. If maintenance margin on short sales
You tell your broker to sell 1,000 shares@\$100(\$100,000) and 50% margin requirement on short sales. You have $50,000 T-bills. If maintenance margin on short sales =40%. This means the equity in your account must be at least 40% of the value of your short position at all times. How far could the stock price RISE before the investor would get margin call
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