Maintenance Margin Calculator

Calculate Maintenance Margin



Formula

The formula to calculate the Maintenance Margin (MM) is:

\[ MM = \frac{BPS}{\left(\frac{BA}{100}\right)} \]

Where:

What is Maintenance Margin?

A maintenance margin is defined as the minimum equity per share that an investment is required to have on hand in order to avoid a margin call. In other words, the minimum price a share can hit before a margin call is issued.

Example Calculation

Consider an example where:

Using the formula to calculate the Maintenance Margin:

\[ MM = \frac{50}{\left(\frac{50}{100}\right)} = 100 \text{ dollars} \]

This means that the maintenance margin for this example is $100.