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(bright music) - [Instructor] Margin, technically, is the difference between the market value of the stock owned and the loan amount. Different securities have different margin requirements. So if the margin requirement for buying stock XYZ is 30%, heres how you would calculate the margin required to buy 1000 shares of stock XYZ, if its priced at $50 per share. You take 1000 shares and multiply by $50 per share, multiplied by the margin requirement of 30%, which equals $15,000. So while your account will have $50,000 worth of stock XYZ in it, the minimum amount of cash you had to put up for this purchase was $15,000. You are allowed to borrow the other 70% or $35,000 from the brokerage. If the value of the stock decreases, you might run into the risk of a margin call. The maintenance margin requirement tells you how much margin you need to have at a minimum at all times. If the maintenance margin requirement is 25%, then if stock XYZ falls in price from $50 to $40, the total position