Баланс, Средства, Маржа, Свободная маржа и Уровень в MT4

Несмотря на разнообразие всевозможных торговых терминалов, платформа MetaTrader 4 по-прежнему остается самым популярным инструментом для торговли на валютном рынке Форекс. Интерфейс торговой платформы MetaTrader 4 интуитивно понятен и не требует для использования какого-то специального образования. Тем не менее, казалось бы, самые простые вещи, иногда вызывают вопросы у начинающих трейдеров.

Для того, чтобы оценить свой торговый счет или принять решение на открытие или закрытие сделки, трейдеру необходимо постоянно контролировать основные показатели своего счета. В терминале MetaTrader 4 пять таких показателей: Баланс, Средства,  Залог или Маржа, Свободно или Свободная Маржа, Уровень. Эти показатели доступны во вкладке «Терминал».

Рис.1. Кнопка вызова вкладки «Терминал»

Рассмотрим подробнее, что означает каждый из пяти показателей торгового счета.

Рис. 2. Показатели торгового счета

Показатель «Баланс» вашего счета в MT4

Баланс – это показатель, который отображает сумму денежных средств на торговом счете трейдера. Особенностью показателя «Баланс» является то, что он не учитывает прибыль или убыток по открытым сделкам, а фиксирует только имеющиеся средства, а также плюс и минус по закрытым сделкам.

Например, на счете имелось 10 000 долларов. Было закрыто две сделки. Одна с прибылью 500 долларов, другая с убытком 498 долларов. Таким образом, баланс составляет 10 000 + 500 – 498 = 10 002 доллара.

Показатель «Средства»

Показатель «Средства», в отличие от показателя «Баланс», учитывает также текущие результаты по открытым сделкам. Простыми словами, Средства – это деньги, которые будут на балансе, если закрыть все открытые сделки.

Например. Баланс составляет 10 002 доллара. Открыта сделка на покупку в паре EUR/USD. Текущий убыток по сделке составляет 22 доллара. Соответственно, показатель «Средства» равен 10 002 – 22 = 9 980 доллара. То есть, если трейдер закроет сделку прямо сейчас, с убытком в 22 доллара, сумма 9 980 долларов из показателя «Средства» перейдет уже в «Баланс».

Показатель «Залог» или «Маржа»

Как известно, легкую доступность торговли на валютном рынке Форекс обеспечивает кредитное плечо, что позволяет уплачивать трейдеру лишь часть суммы, необходимой для открытия ордера. Показатель «Маржа» как раз отображает эту сумму. Размер залога зависит от величины используемого кредитного плеча. Чем больше плечо, тем меньше сумма залога. При кредитном плече 1:10 размер залога для открытия сделки составит 10% от необходимой суммы, при плече 1:100 залог составит уже 1%.

Например, трейдер открывает сделку на покупку в паре евро/доллар объемом 1 стандартный лот. Как известно, стандартный лот – это 100 000 единиц валюты. То есть, трейдер покупает 100 000 евро за доллары. Текущая цена – 1,11995. Таким образом, для открытия сделки необходимо 111 995 долларов. Кредитное плечо на торговом счете равно 1:200, то есть, для открытия сделки трейдеру необходимо 111 995 : 200 = 559,98 долларов мы и видим в показателе «Маржа» (результат округлен с 559,975).

Показатель «Свободно» или «Свободная маржа»

Показатель «Свободная маржа» отображает количество средств на счете, доступных для открытия сделок. Рассчитывается он просто: Свободно = Средства – Залог (Маржа)

Соответственно, в нашем примере, показатель «Свободно» составляет 9 980 (Средства) – 559,98 (Залог) = 9 420,03 (результат округлен, поскольку на самом деле залог составляет 559,975 долларов).

Показатель «Уровень»

Показатель «Уровень», пожалуй, самый важный из всех вышеприведенных. Он отображает отношение показателя «Средства» к показателю «Маржа», выраженное в процентах.

Вернемся к нашему примеру. Показатель «Уровень» будет равен 9 980 (Средства) : 559,98 (Залог) х 100% = 1782,22%.

Показатель «Уровень» напрямую связан с устойчивостью открытых сделок. Почему он так важен? Обычная математика. Чем больше сделок открыто, тем больше знаменатель, в котором у нас показатель «Маржа». Если убыток по одной или нескольким сделкам растет, соответственно, в числителе значение показателя «Средства» уменьшается, а знаменатель «Маржа» остается без изменений.

Форекс брокеры и ДЦ в своих регламентах торговли, которые почему-то мало кто смотрит, указывают пороговое значение показателя «Уровень», при достижении которого открытые сделки будут закрыты принудительно. Частенько такая ситуация становится неприятным сюрпризом для трейдеров и вызывают претензии к компаниям.

Теперь, когда непонятные цифры и проценты обрели достаточно внятный смысл, трейдер сможет более адекватно оценить свои торговые возможности, приумножив свой показатель «Баланс» и никогда не встречаясь с Маржин Коллом.

Еще по теме:

маржа на акциях и фьючерсах- в чем разница?

Всем привет. В последнее время мне довелось стать участником нескольких дискуссий, в корне которых лежали финансовые понятия “маржи” и “плеча”, и я обнаружила, что произнося эти слова, люди зачастую имеют ввиду совершенно разные вещи. Бегло просмотрев материалы по теме в рунете, стало понятно, что существует глобальная путаница в понимании того, что такое маржа на фондовом рынке, и что из себя представляет фьючерсная маржа. Попробуем разложить эти базовые понятия “по полочкам” — возможно, это поможет нам с вами понять, как кардинально отличаются торговля акциями и другими фондовыми инструментами от торговли фьючерсами.  

Так в чем же разница?

Большинство инструментов фондового рынка связано с понятием собственности. Покупая акцию, Вы становитесь (порой совсем номинально и ненадолго) собственником части корпорации, акцией которой Вы торгуете. Говоря иными словами, акция- актив. При покупке актива платится полная рыночная цена этого актива. Вы можете оплачивать актив сами, либо с помощью займа, данного Вам брокером. Так вот, маржа в этом случае — как раз этот самый займ, предоставленный инвестору. Используя такой займ, инвестор может задействовать гораздо меньше собственных средств при покупке securities (акций, облигаций, опционов на акции, и др. ) Маржой создается финансовый рычаг/плечо (leverage), увеличивающее как прибыль, так и убытки. Займ должен быть выплачен брокеру с процентами.

• Процент маржи  = Рыночная стоимость акции — рыночная стоимость долга инвестора, поделенная на рыночную стоимость акции.
• Начальный маржевый займ в США может доходить до 50%. Размер займа может зачастую составлять более 50% рыночной стоимости акций, но есть необходимый баланс, который инвестор должен поддерживать на своем маржинальном счету. Такое требование к балансу будет называться поддерживающей маржой (maintenance margin) и не может составлять менее 25% от полной рыночной стоимости купленных акций или других securities.

Фьючерс, однако, активом не является. Покупая или продавая фьючерс, вы не приобретаете никакой собтвенности, вы не становитесь обладателем ничего, кроме обязательств. Обратите внимание, не прав, а только обязательств.  Вы не “платите” за фьючерс. Вы размещаете на своем счету средства, которые дадут вам возможность оперировать фьючерсными контрактами с целью спекуляций или хеджирования. Именно этот залог и будет называться маржой на рынке фьючерсов. Он не является займом брокера трейдеру. Это ваши собственные средства. Фактически, это гарантия того, что оба участника сделки (которые на бирже друг другу не известны) исполнят свои обязательства, причем маржу предоставляют как продавцы, так и покупатели.

В настоящее время можно говорить как минимум о трех типах гарантийного обеспечения.

 

• Начальная маржа- Initial Margin —  это та сумма, которую биржа желает видеть на вашем счету в день открытия позиции (на первом клиринговом переносе) на каждый открытый вами фьючерсный контракт.  Начальная маржа- функция волатильности цены базового актива и размера контракта, помимо других факторов, и может меняться в любую сторону, в зависимости от того, какая ситуация складывается на рынке базового актива. Обычно биржа предупреждает об изменениях своих маржевых требований как минимум за сутки.
• Поддерживающая маржа- Maintenance margin – это сумма, которую биржа желает видеть на вашем счету на каждый открытый контракт в позиции, длительность которой выходит за рамки второй сессии (т.е. клиринговый перенос #2 и далее). Поддерживающая маржа, как правило, является определенным процентом от начальной, и, разумеется, увеличивается или уменьшается при соответствующих изменениях начальной маржи.

 

Биржа «смотрит» на ваши позиции 1 раз в день – во время клиринга, соответственно, учитывает суточные ценовые колебания базового актива.  Учитывая тот факт, что огромное количество трейдеров не хотят брать на себя риск переноса позиций через перерывы/выходные, и довольствуются спекуляцией в рамках электронной торговой сессии, брокеры, предоставляющие доступ на биржи, предлагают таким трейдерам «спец» условия для торговли- пониженную маржу, которая действует только в рамках торговой сессии, и дает право трейдеру оперировать позициями только внутри этой сессии.  Маржа эта возможна только потому, что современный брокер имеет техническую возможность отслеживать позиции ежесекундно, и контролировать риск открытых позиций со своей стороны (читаем- ликвидировать особо рискованные).

 

• Внутридневная (или «внутрисессионная») маржа- Intraday margin  — минимум того, что должно находится на счету трейдера для возможности иметь позицию по соответствующему контракту в рамках торговой сессии. Время действия такой маржи описано брокером, который ее предоставляет, и условия предоставления такой маржи могут отличаться разительно от брокера к брокеру. Скажем, бывает, что брокер требует дневное обеспечение именно «днем» — реально с 8 до 16 по Чикаго, когда работают его риск менеджеры. Бывает, что брокер вообще поднимает уровень такой маржи до биржевой – или выше, и имеет на это право, примеров подобного в недавнем времени было предостаточно.

Таким образом, понятие маржи при работе с акциями и фьючерсами- кардинально разные “звери”. В одном случае это займ брокера трейдеру для совершения покупки актива, во втором- залог, данный трейдером для возможности осуществления торгов.

 

Понятие плеча или leverage также будет описываться по-разному, когда мы обсуждаем фондовый или срочный рынки.

В торговле акциями, плечо будет иметь прямое отношение к тому, какой процент займа используется при приобретении позиции, и может варьироваться от 1:2 при работе на так называемом счете Reg T(скажем, при покупке акций на $10К вы даете 5К своих средств и занимаете оставшиеся 5К), до 1:6 при работе в Margin Portfolio (как правило, портфели от 100К).

 

Эффект рычага/плечо/leverage на фьючерсном рынке имеет отношение к тому факту, что вы контролируете огромную товарную позицию, разместив на своем счету относительно небольшой залоговый депозит. Плечо заложено в самой фьючерсной природе. Eще раз подчеркнем, никакая часть этого депозита не является займом от брокера. Например, позицию в 1 контракт фьючерса на австралийский и американский доллары 6A, размером в 100000 австралийских долларов (по текущему курсу, $77000) Вы можете контролировать внутри сессии под внутридневное гарантийное обеспечение в $1000, и переносить позицию через клиринг с начальной биржевой маржой в $2420. Таким образом, максимальное плечо, которое может быть достигнуто трейдером при использовании маржи внутри сессии: 1000:77000 или 1:77, для переноса: 2420: 70000 или примерно 1:32, но это все максимальные значения. Предположим, трейдер имеет на счету 10000 залоговых средств и держит открытым 1 контракт 6А- в этой ситуации его эффективное плечо составляет 10000/77000 или 1:7.7.  Реальное, эффективное плечо, которое использует трейдер- это соотношение рыночной величины фьючерсной позиции, и количества залоговых наличных средств, отведенных на эту позицию. Использование максимального  плеча внутри дня практически всегда приводит к ликвидации позиции риск менеджментом, поэтому необходимо рассматривать требуемый уровень гарантийного обеспечения внутри сессии как абсолюдный минимум средств, который должен находится на счету, если Ваш брокер не инструктирует Вас иначе.

 

И при торговле акциями, и при торговле фьючерсами инвестор сам регулирует используемое при формировании позиции плечо. Чем больше инвесторских денег вовлечено в покупку или залог на позицию, тем меньше используемое им плечо. Высокое плечо позволяет выстраивать хеджирование позиций в базовом активе или других инструментах, задействующих базовый актив, с наименьшими затратами, и работает “на руку” HFT, но с точки зрения  неприхотливой спекулятивной активности обычного трейдера, несомненно, это палка о двух концах. Чем агрессивнее/выше плечо, тем больше амплитуда возможных заработков и потерь, тем выше потенциальная волатильность портфеля и риски, вовлеченные в спекуляции и инвестиции.

Надеюсь, информация окажется полезной. Грамотного рассчета рисков и успехов! 🙂

90000 Learn Forex & CFD Trading | Capital Management | Understanding Margin and Leverage 90001 90002 OANDA uses cookies to make our websites easy to use and customized to our visitors. Cookies can not be used to identify you personally. By visiting our website you consent to OANDA’s use of cookies in accordance with our Privacy Policy. To block, delete or manage cookies, please visit aboutcookies.org. Restricting cookies will prevent you benefiting from some of the functionality of our website.90003 & Lt; iframe src = «https://4489469.fls.doubleclick.net/activityi;src=4489469;type=newsi0;cat=oanda0;u1=[fxtrade_id];dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;ord=1 ; num = 1? » mce_src = «https://4489469.fls.doubleclick.net/activityi;src=4489469;type=newsi0;cat=oanda0;u1=[fxtrade_id];dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;ord=1;num= 1? » frameborder = «0» mce_style = «display: none» & gt; & lt; / iframe & gt; 90004 LEVERAGE AND MARGIN 90005 90002 Margin-based trading allows you to leverage the funds in your account to potentially generate larger profits (but also generate larger losses).90003 90004 UNDERSTANDING MARGIN BASED TRADING 90005 90002 OANDA supports marging trading, meaning you can enter into positions larger than your account balance. The downside of this is that you have an equal opportunity to incur significant losses in your account. Therefore, it is best practice to utilize stop loss orders to limit potential losses when utilizing leverage. Remember, stop loss orders are not guaranteed since gaps in market pricing may still cause your orders to be filled at a less advantageous price.90003 90004 IMPORTANT DEFINITIONS 90005 90014 MARGIN 90015 90002 OANDA takes a form of security (or deposit) against any losses that you may incur when you trade, this collateral is typically referred to as margin. The margin needed to open each trade is derived from the leverage limit associated with the asset class that you wish to trade. 90003 90014 LEVERAGE 90015 90002 Leverage allows you to enter into positions larger than your account balance and trade whilst only depositing a fraction of the value of the position that you wish to open.For instance, if you used leverage of 10: 1 and had a balance of £ 100, you could enter into a position with the value of £ 1,000. 90003 90014 MARGIN REQUIREMENT 90015 90002 In order to keep a position open, you are required to maintain a minimum amount of money in your account, this is known as the margin requirement. On OANDA fxTrade, the margin requirement is 50% of the margin needed to open a trade. 90003 90014 MARGIN CLOSEOUT 90015 90002 You are required to maintain sufficient funds on your account to cover the margin requirement.If the funds on your account falls below the margin requirement then your positons will be closed, this is known as margin closeout. 90003 90004 WATCH THE VIDEO 90005 90002 Introduction to Margin and Leverage 90003 90002 Leveraged trading carries a high degree of risk. When trading on margin, both profits and losses can be magnified. Carefully consider your financial objectives, level of experience and appetite for such risk prior to entering the markets. 90003 90002 90037 90038 90003 90004 MARGIN CLOSEOUT EXPLAINED 90005 90002 When the margin closeout value declines to half, or less than half, of the margin used, all tradable open positions in the account will automatically close using the current platform rates at the time of closing.90003 90002 If trading is unavailable for certain open positions at the time of the margin closeout, those positions will remain open and the OANDA platform will continue to monitor your margin requirements. When the markets reopen for the remaining open positions, another margin closeout may occur if your account remains under-margined. 90003 90002 Adverse market movement and / or excessive trading can result in insufficient funds being held on your account to cover the margin requirement to support your open positions, and consequently margin closeout of these open positions.90003 90004 TO AVOID MARGIN CLOSEOUTS 90005 90002 Remember you are responsible for monitoring your account to prevent margin closeouts. You must maintain sufficient margin in your account to support your open positions. 90003 90014 MONITOR YOUR POSITIONS CLOSELY 90015 90014 NEVER LEVERAGE YOUR ENTIRE ACCOUNT BALANCE 90015 90014 DEPOSIT ADDITIONAL FUNDS TO YOUR ACCOUNT 90015 90014 REDUCE THE MARGIN REQUIREMENT BY CLOSING SOME OPEN POSITIONS 90015 90014 CLOSE INDIVIDUAL POSITIONS 90015 90014 SET A STOP LOSS ORDER 90015 90004 WATCH THE VIDEO 90005 90002 How to Avoid a Margin Closeout? 90003 90002 Margin closeouts can help prevent traders from the possibility of a loss that may exceed the total amount of money in their trading account, but in fast markets your losses can exceed your capital.90003 90002 90071 90038 90003 90004 HOW TO CALCULATE MARGIN 90005 90002 Please Note: 90003 90002 In these examples margin is displayed in your account currency. If the instrument you are trading has a different base currency to your account currency, then margin will be calculated in the base currency and then converted to your account currency at the prevailing exchange rate. 90003 90002 There are numerous factors that can affect the rate at which your closeout is executed, inclu 90003.90000 Margin; Long and Short Positions, with Formulas and Examples 90001 90002 90003 Margin 90004 is the use of borrowed funds in brokerage accounts to buy securities using the securities as collateral. Like any loan, the borrower must pay interest while the loan is outstanding, and must eventually pay the loan back. 90005 90002 In the early years of stock exchanges, there were no legal minimum margin requirements. Indeed, during the 1920s, margin requirements were 10% or even less, leading to a highly inflated stock market that eventually crashed in 1929.Many people and businesses were wiped out because they were unable to pay for their stock, causing the bankruptcies of many others. This contagion spread throughout the economy, precipitating the Great Depression. Although many new financial regulations were passed in the 1930s, it was not until 1945 that the United States Federal Reserve instituted minimum margin requirements. Later, stock exchanges and even brokerages also set their own minimum requirements, although their requirements can not be lower than the Federal Reserve requirement, since the Federal Reserve has national authority over the regulation of margin requirements.90005 90002 The interest on the borrowed funds — 90003 margin interest 90004 — is slightly higher than the prime rate that banks charge to their best customers. To use margin, the customer must open a 90003 margin account 90004 with a broker, and the money is borrowed from the broker. The interest rate charged by the broker will depend on how much the broker pays its bank for the money — called the 90003 brokers rate 90004 — plus whatever amount the broker decides to add. Typically, brokers have a sliding scale of margin interest that depends on the size of the individual trading account, with larger accounts paying a lower interest rate than smaller accounts.90005 90002 Margin can also refer to the minimum equity required to insure the performance of an obligation. A common example is the margin needed to short stocks. To sell a stock short, you borrow the shares from a broker, then sell them in the market, with the hope of being able to buy the shares back at a lower price. The proceeds of the stock sale are placed in your brokerage account. Although you are not buying the stocks initially, you will still be required to have a minimum equity in your account before you can short the stock to guarantee that you will be able to repurchase them later, even if the stock price exceeds the shorted price.You do not have to pay interest nor do you earn any interest on the sale proceeds, because the money is not yours, but is held as security to repurchase the stock later. 90005 90002 Like the margin requirement to short stocks, the term margin is also used in futures and forex accounts that specify the amount of cash or cash equivalents, such as U.S. Treasuries, that are required to guarantee the performance of the futures or currency contract. In futures, the margin requirement is frequently referred to as a 90003 performance bond 90004, because it is not borrowed money, but is a deposit that guarantees the performance of the contract at the time of settlement.A trader pays no interest on the margin in a futures or forex account — in fact, traders can earn interest by depositing U.S. Treasuries in a futures account to cover the margin requirement. 90005 90002 In futures and forex, the margin requirement is often expressed as a leverage ratio, which is inversely related to the margin percentage: 90005 90024 90025 90026 90026 90028 100 90029 90030 90025 90028 Margin Percentage 90029 90028 = 90029 90028 90037 90029 90030 90025 90026 90026 90028 Leverage Ratio 90044 90029 90030 90047 90048 Example: Calculating the Margin Percentage from the Leverage Ratio 90049 90002 A 100: 1 leverage ratio yields a 90003 margin percentage 90004 of 100/100 = 90003 1% 90004.A 200: 1 ratio yields 100/200 = 90003 0.5% 90004. You’ll often see these leverage ratios advertised by forex brokers. A 100: 1 ratio allows you to buy $ 100,000 worth of currency while posting only a mere $ 1,000! Forex brokers can offer these low margin requirements because currency does not move with the same magnitude as stocks, especially in a short time, but the large leverage ratio does make currency trading very risky if all the margin is used. 90005 90002 Leverage Ratio = 1 / Margin Percentage = 100 / Margin Percentage 90044 90005 90048 Example: Calculating the Leverage Ratio from the Margin Percentage 90049 90002 Most stock brokers require at least a 50% initial margin, therefore: 90005 90002 90003 Leverage Ratio 90004 = 1/0.5 = 90003 2 90004 90005 90002 In other words, you can buy twice as many stocks using maximum margin than you can without using margin. Your investment is leveraged for greater profits or greater losses. 90005 90002 Margin ratios are usually much smaller in futures than for stocks, where leverage ratios are typically 10: 1, which is equal to a 10% initial margin requirement, but this varies depending on the underlying asset, and whether the trader is a hedger or a speculator — speculators have a slightly higher margin requirement.Forex accounts have an even lower margin requirement, which may vary, depending on the broker. Regular forex accounts typically allow 100: 1 ratios, which corresponds to a 1% margin requirement, and the typical ratio for a forex mini-account is 200: 1. 90005 90002 The rest of this article will discuss using margin for buying or shorting stocks. More information about using margin in futures and for forex can be found here: 90005 90077 Margin Agreement, Initial Margin, Maintenance Margin, Margin Calls, and Restricted Accounts 90078 90002 The most general definition of margin, one that covers both buying and shorting securities, is the ratio of the equity of the account divided by the value of the securities.The 90003 equity 90004 of the account is simply what is left when the debit balance is paid in full or the shorted stocks have been bought back and returned to the lender. 90005 90002 If money is borrowed, then it must be paid back, so the amount borrowed plus the accrued margin interest is a debit to the account; if stocks are sold short, then the shorted stocks must be bought back, so the value of the shorted stocks are a debit to the account. 90005 90024 90025 90026 90026 90028 Equity 90029 90030 90025 90028 Margin 90029 90028 = 90029 90028 90037 90029 90030 90025 90026 90026 90028 Value of Securities 90029 90030 90047 90002 To use margin for trading, you have to open a margin account by signing a 90003 margin agreement 90004.The agreement stipulates, among other things, the initial margin requirement as a percentage, and the margin maintenance percentage. Any securities bought in a margin account are held in the broker’s 90003 street name 90004, and the margin agreement usually gives the broker the right to lend the securities out for a short sale. 90005 90002 Margin trading is governed by the Federal Reserve, and other self-regulatory organizations (SROs), such as the New York Stock Exchange and the 90115 FINRA 90116.90003 Regulation T 90004, promulgated by the Federal Reserve, requires that the minimum deposit be $ 2,000, and that the 90003 initial margin percentage 90004 be at least 50%. 90005 90002 There is also a minimum 90003 maintenance margin 90004 requirement of 25%. The exchanges or the brokerages can set stricter requirements than those required by the Federal Reserve if they choose. At most brokerages, the maintenance margin requirement is set higher, usually at 30%. 90005 90002 The margin ratio can not be less than the maintenance margin rate.If the margin ratio falls below 50%, but remains above the maintenance margin requirement, then the account will be restricted. No additional securities can be bought or sold short in a 90003 restricted account 90004, unless the trader deposits additional cash or securities to increase the margin level to at least 50%. 90005 90002 The amount of margin available will depend on the price of the securities. If margin is used to buy securities, then the amount of margin increases with the market value of the securities, but if the margin is used to short securities, then the amount of margin is inversely related to the price of the shorted securities, and vice versa.90005 90002 If the equity does drop below the maintenance margin requirement, then the broker will issue a 90003 margin call 90004, requesting that additional cash or securities be deposited so that the margin ratio of the account is equal to at least 50%. If you do not respond to the margin call, then your broker will sell enough of your securities that were purchased on margin and / or buy back your shorted securities at the market to bring your margin ratio back to the initial margin requirement of 50%.90005 90077 Margin Trading 90078 90002 The main reason to borrow money to buy securities is for 90003 financial leverage 90004. Financial leverage can increase the rate of return for an investment, if it is profitable, but it also increases potential losses. Because of the potential for greater losses, traders become more emotional in their trading decisions, which may cause excessive trading, which increases transaction costs, and it may cause bad trades when emotion overrules reason. Furthermore, the longer the money is borrowed, the greater the amount of margin interest that must be paid, so using margin for buy-and-hold strategies is generally not a good idea.90005 90002 Another major disadvantage to using margin is that the trader potentially loses some control over the account. If purchased stock drops too much, the broker has the right to sell the stock before notifying the customer. For a short sale, the broker may be forced to buy back the securities in an illiquid market, if the lender wants the securities back. 90005 90002 If the margin ratio increases because purchased securities have increased in value or because shorted securities have decreased in value, then the trader gains 90003 excess margin 90004 that can be used to purchase or short additional securities.Continually using excess margin to increase investments is called 90003 pyramiding 90004. While pyramiding may work for a while, at some point, the equity of the account will decline, because stocks do not continually increase in value nor do shorted stocks continually decline in value. Therefore, eventually there will be a margin call. Hence, the use of margin should be restricted to short-term trades. 90005 90077 Calculating Margin 90078 90002 In a long transaction, you borrow money to buy securities, which you are obligated to repay.Similarly, in a short sale, you sell securities short by borrowing the securities from a broker, then selling them, with the proceeds deposited in your account. But eventually you’ll have to buy the securities back to return them to the lending broker, which is why the market value of the shorted securities is considered a debit to your account. 90005 90002 90003 Equity 90004 is equal to the total value of cash and securities if all open positions are closed and all financial obligations are satisfied.So if you deposit $ 5,000 in an account, and borrow $ 5,000 to buy $ 10,000 worth of stock, then your equity is initially $ 5,000 minus transaction costs. Accruing margin interest will also decrease your equity. If the value of the stock declines to $ 8,000, then your equity is reduced to $ 3,000 minus costs, because now the stock is worth $ 8,000, but you are still obligated to pay your broker $ 5,000 plus interest for the loan, which is your 90003 debit balance 90004. Hence, when using margin to borrow money to enter into a long position by buying stocks: 90005 90002 Equity = Account Value — Debit Balance 90005 90024 90025 90026 90026 90028 Equity 90029 90030 90025 90028 Long Margin 90029 90028 = 90029 90028 90037 90029 90030 90025 90026 90026 90028 Value of Securities 90029 90030 90047 90002 When margin is used as a performance bond to short securities, then equity equals the amount on deposit minus the value of the shorted securities.90005 90002 So if you sold short $ 10,000 worth of stock instead of buying stock with your deposit, then your equity will equal the $ 15,000 on deposit ($ 5,000 deposit + $ 10,000 from short sale) minus the value of the shorted security, which is initially the $ 10,000 that you sold it for. If the value of the stock rises to $ 12,000, then your equity is reduced by $ 2,000, because you’re obligated to buy the stock back, so if you closed your position right now, you would pay $ 12,000 to buy the stock back and have $ 3,000 left in your account (minus transaction costs and dividend payouts).Since shorted securities have to be bought back, the debit balance is equal to the current market value of the shorted securities. 90005 90002 Equity = Account Value — Value of Shorted Securities 90005 90002 Note that the account value will be decreased by transaction costs and by any dividends that have to be paid out while the stock is borrowed. 90005 90048 Example: Calculating the Equity of a Short Account 90049 90002 If you deposit $ 5,000 and sell 1,000 shares of XYZ stock short for $ 10 per share, then there is $ 15,000 on deposit in your account, but your equity is still $ 15,000 — $ 10,000 = $ 5,000 , which is, of course, what you initially deposited.90005 90002 If XYZ price rises to $ 12 per share, then your equity = $ 15,000 — $ 12,000 = $ 3,000. 90005 90002 If XYZ price drops to $ 8 per share, then your equity = $ 15,000 — $ 8,000 = $ 7,000. 90005 90024 90025 90026 90026 90028 Equity 90029 90030 90025 90028 Short Margin 90029 90028 = 90029 90028 90037 90029 90030 90025 90026 90026 90028 Value of Shorted Securities 90029 90030 90047 90002 So the only difference in calculating the margin for a purchase and for a short sale is that the equity for a purchase is the account value minus the debit balance whereas for a short sale, the equity is the account value minus the value of the shorted securities.Both the debit balance and the value of the shorted securities are obligations that you eventually have to pay. 90005 90048 Example: Calculating the Current Margin and Current Equity of a Short Sale. 90049 90002 You open a margin account and deposit $ 5,000. You sell short 1,000 shares XYZ stock for $ 10 per share. The proceeds of the sale, $ 10,000, is deposited in your account for a total account value of $ 15,000. 90005 90002 Scenario 1 — The stock price declines to $ 6 per share, so the 1,000 shares that you sold short is currently worth $ 6,000.Thus: 90005 90232 90233 your equity = $ 15,000 — $ 6,000 = $ 9,000 90234 90233 your margin = $ 9,000 / $ 6,000 = 1.5 = 150% 90234 90237 90002 Thus, this short sale would be profitable if you bought back the shares now to cover your short, for a net profit of $ 4,000 minus brokerage commissions and any dividends that had to be paid while the stock was borrowed. 90005 90002 Scenario 2 — The stock price rises to $ 12.00 per share, which means it will cost you $ 12,000 to buy back the shares now.90005 90232 90233 your equity = $ 15,000 — $ 12,000 = $ 3,000 90234 90233 your margin = $ 3,000 / $ 12,000 = .25 = 25% 90234 90237 90002 Because your current margin is now less than 30%, you will be subjected to a margin call. If you decide to buy back the shares now to cover your short, your net loss will be $ 2,000 plus brokerage commissions and any dividends that had to be paid while the stock was borrowed. 90005 90002 Remember that the above formulas and calculations have been simplified by excluding transaction costs, margin interest, and any dividends that have to be paid for shorted stock.These excluded factors reduce the equity in your account. 90005 90077 Calculating Margin Call Account Values ​​90078 90002 The margin maintenance requirement requires that the margin ratio always be greater than the margin maintenance requirement. If the margin ratio drops below this, then a margin call will be issued. At what account value will a margin call be issued? 90005 90002 First, we consider the use of margin for buying securities. We can derive this formula from the formula for calculating the margin.90005 90258 90233 Margin = (Account Value — Debit) / Account Value 90234 90233 Let m = margin ratio; a = account value; d = debit 90234 90233 m = (a — d) / a 90234 90233 m × a = a — d Multiply both sides by a. 90234 90233 m × a — a = -d Subtract a from both sides. 90234 90233 a — a × m = d Multiply both sides by -1. 90234 90233 a (1 — m) = d Factor out a from the left side. 90234 90233 a = d / (1 — m) Divide both sides by (1 — m). 90234 90233 Account Value = Debit / (1 — Margin) 90234 90277 90048 Example — Finding the Account Value That Will Elicit a Margin Call 90049 90002 You deposit $ 5,000 and borrow $ 5,000 to buy $ 10,000 worth of securities.If the maintenance margin requirement is 30%, what is the value of the securities that will cause a margin call to be issued? 90005 90258 90233 Account Value = Debit / (1 — Margin) 90234 90233 Account Value = $ 5,000 / (1 — .30) = $ 5,000 / .7 = $ 7,142.86 90234 90277 90002 Hence, a margin call will be issued if the value of the securities drops below $ 7,142.86. To verify the answer, we’ll plug this account value into the margin formula to see if it comes out to the maintenance margin percentage: 90005 90002 Margin = ($ 7,142.86 — $ 5,000) / $ 7,142.86 = $ 2,142.86 / $ 7,142.86 = 0.30 = 30% 90005 90002 Now we determine the formula for calculating the value of securities that will elicit a margin call for shorted stock, which is a slightly different equation: 90005 90258 90233 Margin = (Account Value — Value of Shorted Securities) / Value of Shorted Securities 90234 90233 Let m = margin ratio; a = account value; and v = value of shorted securities. 90234 90233 m = (a — v) / v 90234 90233 m * v = a — v Multiply both sides by v.90234 90233 v + m * v = a Add v to both sides. 90234 90233 v (1 + m) = a Factor out v from the left side. 90234 90233 v = a / (1 + m) Divide both sides by 1 + m. 90234 90233 Value of Shorted Securities = Account Value / (1 + Margin) 90234 90277 90048 Example: Calculating the Margin Call Price of a Shorted Security 90049 90002 You open a margin account and deposit $ 5,000. You sell short 1,000 shares XYZ stock for $ 10 per share. The proceeds of the sale, $ 10,000, is deposited in your account for a total account value of $ 15,000.The margin maintenance requirement is 30%. Therefore, the margin call value = 15,000 / (1 + .3) = 15,000 / 1.3 = $ 11,538.46. This is equal to a 90003 price per share 90004 of $ 11,538 / 1,000 = $ 11.54 (rounded) per share. So a margin call will be triggered when the price of the shorted security rises to $ 11.54. 90005 90002 To verify, we substitute $ 11,538.46 into the margin formula for shorted stock, and find that (15,000 — 11,538.46) /11,538.46 = 0.30 = 30%, the margin maintenance requirement. Note that if any dividends were paid out, this would have to be subtracted from the account value.90005 90077 Return on Investment 90078 90002 Margin increases the 90003 rate of return 90004 on investment, if the investment is profitable, but increases losses, if not. Furthermore, transaction costs, margin interest, and any dividend payments for shorted stock subtract from profits but add to losses. Any dividends received from purchased stock will increase profits and reduce losses. For a purchase, the rate of return is determined by the following equation: 90005 90024 90327 Rate of Return for a Long Position Formula 90328 90025 90026 90026 90028 (Stock Sale Price 90044 + Dividends Received 90044 — Stock Purchase Price 90044 — Margin Interest) 90029 90030 90025 90028 Long Rate of Return 90029 90028 = 90029 90028 90037 90029 90030 90025 90026 90026 90028 Stock Purchase Price 90029 90030 90047 90002 For instance, if you purchased $ 10,000 worth of stock with cash and the stock rises to $ 12,000, then your return on investment is: 90005 90002 90003 Rate of Return 90004 = ($ 12,000 + 0 — $ 10,000 — 0) / $ 10,000 = $ 2,000 / $ 10,000 = 90003 20% 90004 90005 90002 If instead of paying cash for the stock, you pay $ 5,000 cash and use $ 5,000 of margin , then your rate of return, ignoring margin interest to simplify things: 90005 90002 90003 Rate of Return 90004 = $ 2,000 / $ 5,000 = 90003 40% 90004 90005 90002 As you can see , Using the maximum amount of margin almost doubles your rate of return if the holding period is short enough to keep margin interest negligible.From this example, you can also clearly see that if the value of the stock decreased by $ 2,000 instead of rising, then there would be minus signs in front of the rates of return. Furthermore, margin interest increases potential losses and subtracts from potential profits. To illustrate, if your broker charges 6% annual margin interest and you hold the stock for 1 year, then your broker will charge $ 300 of interest for the $ 5,000 you borrowed for 1 year. Thus, the rate of return if stock is sold for $ 12,000 is: 90005 90002 90003 Rate of Return 90004 = ($ 12,000 — $ 10,000 — $ 300) / $ 5,000 = $ 1,700 / $ 5,000 = 90003 34% 90004 90005 90002 If the stock is sold at a loss for $ 8,000: 90005 90002 90003 Rate of Return 90004 = ($ 8,000 — $ 10,000 — $ 300) / $ 5,000 = — $ 2,300 / $ 5,000 = 90003 -46% 90004.90005 90002 The longer the margin is borrowed, the more margin interest will decrease any potential profits and increase potential losses. 90005 90002 Note that the equation for shorted stock would be slightly different, since, as a short seller, you must pay any dividends to the lender of the stock that the lender would have otherwise received, but you do not have to pay margin interest. However, you do have to post an initial margin requirement, which is typically equal to ½ of the value of the shorted stock.Thus, the equation for the rate of return for the short seller is: 90005 90024 90327 Rate of Return for a Short Sale Formula 90328 90025 90026 90026 90028 (Stock Sale Price 90044 — Dividends Paid 90044 — Stock Purchase Price) 90029 90030 90025 90028 Short Rate of Return 90029 90028 = 90029 90028 90037 90029 90030 90025 90026 90026 90028 Initial Margin Requirement 90029 90030 90047 90077 Margin Risks 90078 90002 Using margin is risky. Sometimes stock prices drop so fast, there is no time for margin calls, so the broker is forced to sell margined stock at low prices, potentially devaluing an account to zero or even less! A good example is provided by the Great Recession of2008.During the week ending October 13, 2008, the average stock price plunged 18%, forcing many investors who bought stock on margin to sell, which was probably a major factor contributing to the steep decline. Consider these examples reported in this New York Times article, Margin Calls Prompt Sales, and Drive Shares Even Lower: 90005 90232 90233 Aubrey K. McClendon, chief executive of Chesapeake Energy, was forced to sell his entire stake of 33.5 million shares in his company at a price range of $ 15 — $ 22 per share.In July, the stock price was above $ 60 per share. 90234 90233 Sumner M. Redstone, the chairman of Viacom and CBS, was forced to sell $ 400 million worth of shares in his companies to pay down debt. 90234 90233 One senior wealth management executive reported that people with $ 30,000,000 in their brokerage accounts were wiped out in days. 90234 90237 90002 This illustrates the risks of using margin: you may be forced to sell at the very time when stock prices hit bottom! And since other investors will also be forced to sell in the declining market, the market declines even further.When the stock market starts declining, it is best to sell some stock to lock in gains and to pay off margin; otherwise you will be forced to sell low after you bought high. 90005 90048 Stocks in Margin Accounts Can Lead to Empty Voting and Payment in Lieu of Dividends 90049 90002 There are 2 disadvantages to holding stocks in a margin account, which are often lent out to short sellers: 90005 90258 90233 90002 stock borrowers, but not stockholders , can vote shares when the shares are lent out, which leads to what is being called 90003 empty voting 90004; 90005 90234 90233 90002 and if the stocks pay a dividend, the stockholders actually get — instead of a dividend that may qualify for the favorable tax rate of 0%, 15%, or 20% — a 90003 payment in lieu of dividends 90004, which is taxed as ordinary income that may be as high as 37%.See Taxation of Dividends for more information. 90005 90234 90277 90002 Worse, the borrowers of the stock, often short-sellers, can vote against the corporation’s interest to put downward pressure on the stock price, so as to increase short-selling profits — thus, voting against the interests of the true stock owners. 90005 90002 A possible scenario is for a hedge fund, which frequently profits from short selling, to borrow the shares right before the record date — usually 30 days before the vote, and vote in its own interests.Delaware law, which governs most large companies because they are incorporated in that state, gives voting rights to whomever happens to have the stock on the record date. Often, the beneficial owners of the stock are unaware of the lending, and that their right to vote has been transferred to someone else. 90005 90002 Sometimes, because of inadequate accounting, both actual stockholders and the borrowers vote, leading to 90003 overvoting 90004, which the New York Stock Exchange had found to be a frequent occurrence in some instances.90005 90048 Margin Calls May Force a Stock Sale at the Market Bottom 90049 90002 During the week ending October 13, 2008, the average stock price plunged 18%, forcing many investors who bought stock on margin to sell, which was probably a major factor contributing to the steep decline. For instance, according to Margin Calls Prompt Sales, and Drive Shares Even Lower, Aubrey K. McClendon, chief executive of Chesapeake Energy, was forced to sell his entire stake of 33.5 million shares in his company at a price range of $ 15 — $ 22 per share.In July, the stock price was above $ 60 per share. Sumner M. Redstone, the chairman of Viacom and CBS, was forced to sell $ 400 million of shares in his companies to pay down debt. One senior wealth management executive reported that people with $ 30,000,000 in their brokerage accounts were wiped out in days. 90005 90002 This illustrates the risks of using margin: you may be forced to sell at the very time when stock prices hit bottom! And since other investors will also be forced to sell in the declining market, the market declines even further.When the stock market starts declining, it is best to sell some stock to lock in gains and to pay off margin; otherwise you will be forced to sell low after you bought high. 90005.90000 CSS Margin 90001 90002 90003 This element has a margin of 70px. 90004 Try it Yourself » 90002 90006 CSS Margins 90007 90003 The CSS 90009 margin 90010 properties are used to create space around elements, outside of any defined borders. 90004 90003 With CSS, you have full control over the margins. There are properties for setting the margin for each side of an element (top, right, bottom, and left). 90004 90002 90006 Margin — Individual Sides 90007 90003 CSS has properties for specifying the margin for each side of an element: 90004 90019 90020 90009 margin-top 90010 90023 90020 90009 margin-right 90010 90023 90020 90009 margin-bottom 90010 90023 90020 90009 margin-left 90010 90023 90036 90003 All the margin properties can have the following values: 90004 90019 90020 auto — the browser calculates the margin 90023 90020 90043 length 90044 — specifies a margin in px, pt, cm, etc.90023 90020 90043% 90044 — specifies a margin in% of the width of the containing element 90023 90020 inherit — specifies that the margin should be inherited from the parent element 90023 90036 90003 90054 Tip: 90055 Negative values ​​are allowed. 90004 90057 Example 90058 90003 Set different margins for all four sides of a

element: 90004 90003 p {90062 margin-top: 100px; 90062 margin-bottom: 100px; 90062 margin-right: 150px; 90062 margin-left: 80px; 90062} 90004 Try it Yourself » 90002 90002 90006 Margin — Shorthand Property 90007 90003 To shorten the code, it is possible to specify all the margin properties in one property.90004 90003 The 90009 margin 90010 property is a shorthand property for the following individual margin properties: 90004 90019 90020 90009 margin-top 90010 90023 90020 90009 margin-right 90010 90023 90020 90009 margin-bottom 90010 90023 90020 90009 margin-left 90010 90023 90036 90003 So, here is how it works: 90004 90003 If the 90009 margin 90010 property has four values: 90004 90019 90020 90054 margin: 25px 50px 75px 100px; 90055 90019 90020 top margin is 25px 90023 90020 right margin is 50px 90023 90020 bottom margin is 75px 90023 90020 left margin is 100px 90023 90036 90023 90036 90057 Example 90058 90003 Use the margin shorthand property with four values: 90004 90003 p {90062 margin: 25px 50px 75px 100px; 90062} 90004 Try it Yourself » 90003 If the 90009 margin 90010 property has three values: 90004 90019 90020 90054 margin: 25px 50px 75px; 90055 90019 90020 top margin is 25px 90023 90020 right and left margins are 50px 90023 90020 bottom margin is 75px 90023 90036 90023 90036 90057 Example 90058 90003 Use the margin shorthand property with three values: 90004 90003 p {90062 margin: 25px 50px 75px; 90062} 90004 Try it Yourself » 90003 If the 90009 margin 90010 property has two values: 90004 90019 90020 90054 margin: 25px 50px; 90055 90019 90020 top and bottom margins are 25px 90023 90020 right and left margins are 50px 90023 90036 90023 90036 90057 Example 90058 90003 Use the margin shorthand property with two values: 90004 90003 p {90062 margin: 25px 50px; 90062} 90004 Try it Yourself » 90003 If the 90009 margin 90010 property has one value: 90004 90019 90020 90054 margin: 25px; 90055 90019 90020 all four margins are 25px 90023 90036 90023 90036 90057 Example 90058 90003 Use the margin shorthand property with one value: 90004 90003 p {90062 margin: 25px; 90062} 90004 Try it Yourself » 90002 90006 The auto Value 90007 90003 You can set the margin property to 90009 auto 90010 to horizontally center the element within its container.90004 90003 The element will then take up the specified width, and the remaining space will be split equally between the left and right margins. 90004 90057 Example 90058 90003 Use margin: auto: 90004 90003 div {90062 width: 300px; 90062 margin: auto; 90062 border: 1px solid red; 90062} 90004 Try it Yourself » 90002 90006 The inherit Value 90007 90003 This example lets the left margin of the

element be inherited from the parent element (