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This is a bad example because no broker would force you to sell your own equity.

You had 100 dollars, you're leveraging 50 cents for every dollar you put in giving you a .5:1 leverage ( or 50%, or 1.5/1 as a fraction)

Only if the stock loses more than 100 dollars in your equity would the broker be worried and ask for margin. This means your $150 dollars of leveraged stock would have to drop to $50 dollars before the broker would be worried and sell your stock to get their $50 back. This means your stock could drop 66,7% or 2/3 as a fraction.

All fees are paid upfront and the rest from your margin. Not your stock.



Perhaps you're arguing that the leverage ratio I used as an example was extreme, but otherwise you are wrong that "no broker would force you to sell your own equity." If there's a margin call and you don't deposit additional cash, then a broker will force a sale of the stock. "Brokers may force a trader to sell assets, regardless of the market price, to meet the margin call if the trader doesn’t deposit funds."

[1] https://www.investopedia.com/terms/m/margincall.asp




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