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Market Drop Before Margin Call 2016-09-15

Market Drop Before Margin Call

  1. Simon Hampel
    This spreadsheet shows the percentage market drop required to trigger a margin call for a range of Loan-to-Value ratios.

    1. enter the amount of the margin loan into cell B1
    2. enter the initial value of the portfolio (before the market drop) into cell B2
    3. enter the margin buffer into cell B3 (this will usually be 5% or 10%, depending on the margin lender)
    4. 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.