margin rate

[archived_user]

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?

 

[archived_user]

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