Enter the total number of shares, the price per share ($), and the margin rate percentage (%) into the Trade Margin Calculator. The calculator will evaluate and display the Trade Margin.
Trade Margin Formula
The following formula is used to calculate the Trade Margin.
TM = #S * PPS * MR/100
- Where TM is the Trade Margin ($)
- #S is the total number of shares
- PPS is the price per share ($)
- MR is the margin rate percentage (%)
How to Calculate Trade Margin?
The following example problems outline how to calculate Trade Margin.
Example Problem #1
- First, determine the total number of shares.
- The total number of shares is calculated to be : 50.
- Next, determine the price per share ($).
- The price per share ($) is measured to be: 100.
- Next, determine the margin rate percentage (%).
- The margin rate percentage (%) is found to be: 25.
- Finally, calculate the Trade Margin using the formula above:
TM = #S * PPS * MR/100
The values given above are inserted into the equation below and the solution is calculated:
TM = 50 * 100 * 25/100 = 1250 ($)
Example Problem #2
The variables required for this problem are provided below:
total number of shares = 60
price per share ($) = 70
margin rate percentage (%) = 80
Test your knowledge using the equation and check your answer with the calculator above.TM = #S * PPS * MR/100 = ($)
