Part 3/7:
Now, let’s consider two possible scenarios one month later:
Scenario One: The share price drops to $7. You can buy back your share for $7, return it to your brokerage, and pocket the $3 difference as profit.
Scenario Two: The share price rises to $13. In this case, you might receive a notification from your brokerage urging you to deposit more funds into your margin account to cover your losses. Here, you've got two choices: you can either add more money to your account or buy back the shares at the current market price to close your position, resulting in a $3 loss.