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Market Drop Before Margin Call
This spreadsheet shows the percentage market drop required to trigger a margin call for a range of Loan-to-Value ratios.
Instructions- enter the amount of the margin loan into cell B1
- enter the initial value of the portfolio (before the market drop) into cell B2
- enter the margin buffer into cell B3 (this will usually be 5% or 10%, depending on the margin lender)
- enter the max gearing ratio for the portfolio into cell B4.
The spreadsheet will calculate the % drop in the market to trigger a margin call.
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Sim'
This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.
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