The formula to calculate the portfolio margin (PM) is:
\[ PM = PV \times \frac{MPR}{100} \]
Where:
Let's say the portfolio value (PV) is $100,000 and the margin percentage requirement (MPR) is 25%. Using the formula:
\[ PM = 100000 \times \frac{25}{100} \]
We get:
\[ PM = 25000 \, \text{dollars} \]
So, the portfolio margin is $25,000.