3.7.2. Long Positions in Margin Accounts
When a customer buys 1,000 shares on margin, we say that the customer is “long” 1,000 shares. Suppose a customer purchases 1,000 shares at $60/share on margin. The long market value (LMV) of the stock is $60,000. Regulation T requires the customer to put down at least 50% of this amount ($3
