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

  1. First, determine the total number of shares.
    • The total number of shares is calculated to be : 50.
  2. Next, determine the price per share ($). 
    • The price per share ($) is measured to be: 100.
  3. Next, determine the margin rate percentage (%). 
    • The margin rate percentage (%) is found to be: 25.
  4. 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 = ($)