Say the broker requires a init margin of 40%, and a maintenance margin of 30%.
If I buy 10000 USD worth of stock, depositing a margin of 10000 * 40% = 4000 USD. How do I calculate the required margin when the stock goes up(in my favor)? If the required margin is less than 4000 USD, does it mean the broker will release some of the margin back to my cash account to buy or short more stock?