Enter the purchase price ($) and the margin requirement ($) into the Initial Margin Calculator. The calculator will evaluate and display the Initial Margin.
Initial Margin Formula
The following formula is used to calculate the Initial Margin.
IM = MR / PP * 100
- Where IM is the Initial Margin (%)
- PP is the purchase price ($)
- MR is the margin requirement ($)
How to Calculate Initial Margin?
The following example problems outline how to calculate Initial Margin.
Example Problem #1:
- First, determine the purchase price ($).
- The purchase price ($) is given as: 120.
- Next, determine the margin requirement ($).
- The margin requirement ($) is provided as: 60.
- Finally, calculate the Initial Margin using the equation above:
IM = MR / PP * 100
The values given above are inserted into the equation below and the solution is calculated:
IM = 60 / 120 * 100 = 50 (%)
Example Problem #2:
For this problem, the variables required are provided below:
purchase price ($) = 700
margin requirement ($) = 180
Test your knowledge using the equation and check your answer with the calculator above.
IM = MR / PP * 100 = ?