Calculate margin interest costs for leveraged trading. Analyze borrowing costs, interest rates, and margin requirements for informed trading decisions.
Total value of securities purchased
Your own money invested
Annual margin interest rate
Number of days holding position
Minimum initial margin percentage
Minimum maintenance margin percentage
Current price per share
Expected price change (positive or negative)
Calculate borrowing costs
Margin trading allows you to borrow money from your broker to purchase securities. While this can amplify returns, it also increases risk and involves interest costs on borrowed funds.
Use margin for quick trades to minimize interest costs.
Leverage to maintain diversified positions with limited capital.
Use margin to implement hedging positions.
Set stop-losses and monitor margin levels closely.