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margin rate

Hi,

I want to confirm on how margin rate is calcualted.

For example, if margin requried is 40% and if I deposit $100k, I can buy stocks worth of the following value

100k/.4= 250k

So broker will give of margin $150 k to invest. Is it correct?

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you are right, you borrow $150 k from your broker and have to pay interest on the loan.