You may withdraw up to $7,400 from your margin account without triggering a margin call.
The margin requirement is 10%, you need to maintain a minimum equity of 10% of the total value of your securities.
First, calculate the total value of your securities by multiplying the number of shares (500) by the current trading price per share ($32):
Total value of securities = 500 shares * $32/share = $16,000
Next, calculate the minimum equity required by multiplying the total value of the securities by the margin requirement (10%):
Minimum equity required = $16,000 * 10% = $1,600
Now, subtract the loan amount from the total value of the securities to determine your equity:
Equity = Total value of securities - Loan amount = $16,000 - $7,000 = $9,000
To find out how much you may withdraw without triggering a margin call, subtract the minimum equity required from your current equity:
Maximum withdrawal = Equity - Minimum equity required = $9,000 - $1,600 = $7,400
Therefore, you may withdraw up to $7,400 from your margin account without triggering a margin call.