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in this video we are going to understand what triggers a margin call in a margin account so letamp;#39;s say you have a margin account with $25,000 in it and you want to buy $1,000 shares of ABC company at $50 uh per share by default you have a 50% uh margin requirement for these rules are set by the SEC the self-regulatory organization finra New York Stock Exchange and depending on what stock you buy the requirements are a little bit different and by default you have a 50% margin requirement uh when you are not under PDT the pattern day trading rule okay so in this table letamp;#39;s put the numbers 1,000 shares market value equal $50,000 how much did you you borrow from your broker 25k what is your Equity Equity equal market value minus the debit what you borrowed so itamp;#39;s 25k as well we have to calculate regulation T 50% you will understand why in a moment so regulation T in this case is 25k we donamp;#39;t need to calculate the special memorandum account and the minimum m