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REDDIT

Understanding Margin Correctly

S
Oct 4, 2026 · 20:40

I'm testing out a new strategy and I want to make sure that I set my margin usage correctly to prevent the potential for a margin call. If you could check my math I would appreciate it.

Would the margin call happen between a 500% and 600% drawdown when the equity% reaches less than 30%? Assuming a 200% margin requirement for this security.

|Account Value|Initial Value|Initial Margin Used|Drawdown|Final Value|Loss|Final Value|Margin Requirement|Equity %|
|:-|:-|:-|:-|:-|:-|:-|:-|:-|
| $                        100,000.00| $                10,000.00|10%|100%| $                         20,000.00| $                     (10,000.00)| $  90,000.00| $                    40,000.00|225.00%|
| $                        100,000.00| $                10,000.00|10%|200%| $                         30,000.00| $                     (20,000.00)| $  80,000.00| $                    60,000.00|133.33%|
| $                        100,000.00| $                10,000.00|10%|300%| $                         40,000.00| $                     (30,000.00)| $  70,000.00| $                    80,000.00|87.50%|
| $                        100,000.00| $                10,000.00|10%|400%| $                         50,000.00| $                     (40,000.00)| $  60,000.00| $                  100,000.00|60.00%|
| $                        100,000.00| $                10,000.00|10%|500%| $                         60,000.00| $                     (50,000.00)| $  50,000.00| $                  120,000.00|41.67%|
| $                        100,000.00| $                10,000.00|10%|600%| $                         70,000.00| $                     (60,000.00)| $  40,000.00| $                  140,000.00|28.57%|
| $                        100,000.00| $                10,000.00|10%|700%| $                         80,000.00| $                     (70,000.00)| $  30,000.00| $                  160,000.00|18.75%|
| $                        100,000.00| $                10,000.00|10%|800%| $                         90,000.00| $                     (80,000.00)| $  20,000.00| $                  180,000.00|11.11%|
| $                        100,000.00| $                10,000.00|10%|900%| $                       100,000.00| $                     (90,000.00)| $  10,000.00| $                  200,000.00|5.00%|
| $                        100,000.00| $                10,000.00|10%|1000%| $                       110,000.00| $                   (100,000.00)| $                 -  | $                  220,000.00|0.00%|