You will be amazed at how quickly this table will get stuck in your brain – practice will make perfect.
Now, depending on the exam you are taking, you may have to memorize a long margin table for exam day. So before I let you go, I want to give you a few pointers in that regard.
First let’s focus on the right side of the table. Memorize 70, 50, 40, 20. And I’d bet if you say that 10 times it will stick. 70, 50, 40, 20.
Now let’s focus on the left side of the table. The maximum loan is reserved for stocks that meet certain criteria and are considered eligible for reduced margin. This essentially means the client can borrow more and has to put up less of their own money referred to as their margin requirement. Notice that the stock must trade for at least $1.50 to qualify for a margin loan.
Finally notice the tiers in between have a spread of 25 cents. If you practice writing this table out, you will be amazed at how quickly it will get stuck in your brain and of course, practice will make perfect.