Series 66: Combined Positions In Margin Accounts

Taken from our Series 66 Online Guide

Combined Positions in Margin Accounts

A combined account is an account that contains both long and short positions in it. To calculate the combined equity within the account, calculate the equity of both the long and short positions and add them together.

Example: Combined Account.

John Robert’s account contains the following:

LMV = $65,000

SMV = $20,000

Debit balance = $40,000

Credit balance = $35,000

To find the account’s equity, start by using the relevant equations:

LMV

debit balance

=

equity

$65,000

$40,000

=

$25,000

credit balance

SMV

=

equity

$35,000

$20,000

=

$15,000

long equity

+

short equity

=

combined equity

$25,000

+

$15,000

=

$40,000

Note that the long and short positions are calculated separately, and in this example, both accounts are above their minimum mainten

Since you're reading about Series 66: Combined Positions In Margin Accounts, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 66
Please Enable Javascript
to view this content!