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What is Short Sale Margin Requirement Explained about?

Caroline Rogers is executing a short sale of 200 shares of Gamma Corp. at €47 per share, totaling €9,400. To initiate this short sale, she must meet an initial margin requirement of 40%, which amounts to €3,760. Therefore, she needs to deposit €3,760 as collateral with the broker.

Author
veyayin946
Language
EN