If you lost 20 percent on $100 worth of stock in a 2x margin account, then you would:

Question

Quizplus · Accepted Answer

In a 2x margin account, you are borrowing 50% of the value of the stock you are purchasing. Therefore, if you have $100 worth of stock, you are actually investing $50 of your own money and borrowing another $50. If you lose 20% on the stock, the value of the stock drops to $80. Since you are using margin, you are liable for the borrowed $50, so you would need to repay that amount even though the value of the stock has decreased. Therefore, your total loss would be $40 ($50 - 20% of $50 = $40).

If You Lost 20 Percent on $100 Worth of Stock