Weird Margin call formula!

Hi every one !
after i read all the Margin Trading 101 and try to understand it
i checked with my broker for my Margin call level notification .
and the answer was :
Margin call notification
A warning is sent when your equity reaches 130% of the required margin.

after i tried to find the answer with my poor math
so i find out that by other word it is a 130% Margin level .

but i still not sure about it !

i hope some one can confirm that for me or help me to fine the right answer .

thanks !
<3

I once asked my broker the same question about margin call and stop out level and got the below reply:

Our margin call/stop out levels are 70%/50%. Basically getting a margin call depends on the used margin in your account, let me explain with the help of an example ( with you opening an account with $10,000) taking different scenarios in consideration.

  • When used margin is $1000

if used margin is $1000 then in this case if equity drops below 70% of used margin i.e. if equity drops below $700 then, you will get the margin call alert and if equity drops below 50% of used margin i.e. if equity falls below $500, then your positions will be stopped out by the system.

  • When used margin is $5000

if used margin is $5000 then in this case if equity drops below 70% of used margin i.e. if equity drops below $3500 then, you will get the margin call alert and if equity drops below 50% of used margin i.e. if equity falls below $2500, then your positions we will be stopped out by the system.

Hope this helps.

thanks for your answer!
but as you are trying to explain it to me so you have a clear way to calculate it.
and unfortunately and because of my poor math I cloud not find some way to calculate by my self,
so I hope that u can help me to find any other way to form it in a simple way that is better than what my broker said “when equity reaches 130% of the required margin”.

thank you one more time for your patience.

You better check all the questions with the manager of the brokerage company. You should always be aware of the situation.

Our colleague has already explained everything correctly to you.
And it’s cool that the company warns you about the danger. It is absolutely right.

If you get a margin call from your broker, it means that you need to pay attention to your account. It also depends upon the used margin that is in your account.