Buying power
Buying power (BP) is the amount of funds you can use to purchase stock intraday.
Margin equity (EQ)
The entire balance of your account, including all cash and all securities positions,
less the outstanding margin debit balance.
Market value (MV)
Shares X current price.
e.g. 1,000 shares of MSFT @ 120 = MV of $120,000
Maintenance requirements (MR)
That part of the value of your securities positions withheld from your equity when
calculating buying power. Please note that all DTBP figures are calculated pursuant
to the minimum maintenance requirements which are shown above.
Maintenance requirements for buying
power
30% of MV for long reduced margin eligible securities positions
e.g. long 1,000 MSFT @ 120
MV = $120,000
MRDTB = $36,000
30% of MV or $5 a share (whichever is greater) for short securities positions
e.g. short 1,000 MSFT @ 120
MV = $120,000
MRDTB = $36,000
100% of cash positions (penny stocks [stocks under $5] bulletin board securities,
etc.)
e.g. long 1000 SPAZ (penny stock) @ 4
MV = $4,000
MRDTB = $4,000
Maintenance excess (ME)
Equity - maintenance requirements for trading buying power.
Buying power (BP) in a margin account
300% of maintenance excess, or maintenance excess x 3.
Mark to market
At the end of every day, each stock you are holding overnight gets marked to the
market. This means that any positions you are carrying overnight will be valued
at the official closing bell price and your equity will be raised or lowered accordingly.
Essentially your account is given a value which is based on any cash (or debits)
plus the current value of your positions (marked to market).