Available Equity

What is Available Equity?

Available Equity meaning (Stock Market Game term) The amount of total equity remaining for buy and short-sell trades after subtracting the initial margin requirement for existing long and short positions. If available equity is zero or negative, all buy and short-sell transactions will be rejected. Here is the calculation of available equity. If the value of shorts is negative, ignore the minus sign.

Available Equity = Total Equity – [50% x (value of longs + value of shorts)]

 

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