When the investor is unable to maintain the equity above the maintenance margin requirement, a margin call occurs.ДЇor Example: You have $20,000 worth of securities bought using $10,000 in cash and $10,000 on margin. This is called the Maintenance Margin Requirement. When an investor holds securities bought on margin, in order to allow some fluctuation in price, the minimum margin requirement at Firstrade for most stocks is lowered to 25%. > You can purchase up to $10,000 worth of stock ABC using your margin buying power. > Buying power > is less than or equal to $5,000 / 50% = $10,000 For example, if you have $5,000 and would like to purchase stock ABC which has a 50% initial margin requirement, the amount of stock ABC you are eligible to buy on margin is calculated as follows:Д«uying power * 50% > is less than or equal to $5,000. According to Regulation T of the Federal Reserve Board, the Initial Margin requirement for stocks is 50%, and the Maintenance Margin Requirement is 25%, while higher requirements for both might apply for certain securities.ДЄn Initial Margin Requirement refers to the percentage of equity required when an investor opens a position. It can be further broken down into Initial Margin Requirement and Maintenance Margin Requirement. A Margin Requirement is the percentage of marginable securities that an investor must pay for with his/her own cash.

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