Purchase 1,000 shares of a stock at $50 with margin rate of 30%. The margin requirement would be: 1,000 shares x $50 x 30% margin rate = $15,000 This is the minimum required amount of cash or excess margin that must be in the account before a buy order can be entered. Since 30% is the margin rate, BMO InvestorLine is lending the account holder 70% of the trade value. Maximum loan value is 1,000 shares x $50 x 70% = $35,000

Short sell 500 shares of a 50% marginable stock priced at $10.00. The margin requirement is 150%. Note: 100% of the margin requirement is generated from the sale of the security. Therefore, the additional initial margin requirement is 50%, the same amount required in order to accept the trade if you were purchasing the stock. 500 shares x $10.00 x 50% = $2,500 The total margin requirement to hold the position, including the 100% of the proceeds from the short sell, is calculated as follows: 500 share x 10.00 x 150% = $7,500 (Note: BMO InvestorLine does not pay interest on the cash proceeds of the short sale.)