s, the hedge funds shorted the stock, there was no real selling. Hedge funds borrowed shares in millions from MM and used for shorting. They have to cover tomorrow, don't sell
You won't generate a margin call until close tomorrow.
Lets assume the value of your ELN stock is down $100,000 from yesterdays close then your net assets in your account will be $0. Therefore, your margin call will be exactly the current margin requirement to hold your stocks which will be between $50,000 and $100,000 depending on how much of you stocks are marginable. ELN is no longer marginable if it stays below $5.
OK, lets try that again. I had as of close today 3 stocks total of about 200,000, 100,000 is margined. Now it seems my total share value because of this
Yes, I have been in your shoes before. I finally wised up, learned to trade the market and went to a discount broker with self-directed trades.
You margin call will equal to the amount of money that you are below $0 + the margin requirements to hold the stock.
For example: if you bought 1000 shares of stock XYZ at $10 for a total of $10,000 with $5000 in cash and $5000 in margin and the stock went to $2 your margin call would be $3000 + $2000 = $5000 or ( the amount of money to get back to $0 + the margin requirement to hold the stock which in this case the requirement would be 100% since the stock now trades below $5 )
I hope this helps.
Boy you have much to learn. This stock could go BK anytime to protect the companies assets against lawsuits including their cash.
Also, I don't need the stock to go to 0 to make money. I will sell some covered puts in the morning to hedge my short position.
You sure are playing with a lot of money without knowing how to hedge. If you wanted to be long on this stock you should of at least covered your long position by selling some covered calls or use a straddle strategy.