You recently purchased 100 shares of Tesla for $320/share. To complete this transaction, you borrowed $10,000...

Question

Question

You recently purchased 100 shares of Tesla for $320/share. To complete this transaction, you borrowed $10,000 from your broker.

What is your margin?

Answer 1

Answer #1

Margin is the amount borrowed from the broker. This is $10,000.

Margin = Margin amount/ Cost of the asset

= 10000/ 100*320

=31.25%

Answer 2

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