Margin and leverage
Leverage, borrowed amount and the price where a margin call can hit a long stock position.
Results
How it works
Leverage is position value divided by your own cash. Borrowing magnifies gains and losses, so a 2x position loses twice as much as an unleveraged one on the same move.
A margin call can happen when your equity falls below the maintenance requirement: price = loan / (shares x (1 - maintenance %)). The 25% default is a common minimum, but brokers often require more. This covers long stock positions only, so check your broker for exact rules.