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| {{eqderivprov|Equity Amount}}s, then. Straightforward enough: Take your {{eqderivprov|Equity Notional Amount}} — helpfully filled out in the {{eqderivprov|Confirmation}} — multiply it by the {{eqderivprov|Rate of Return}}, being the performance of the underlying share over the period in question — and there’s your number.
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| Let’s put some numbers on this, because, as with many of the finer creations of {{icds}}, there is quite a lot of buried technology in there to unpack.
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| The first component is the '''{{eqderivprov|Rate of Return}}'''. This is a calculation of the performance of the {{eqderivprov|Share}} over the period, times a {{eqderivprov|Multiplier}} which might apply if you are doing some kind of kooky [[leverage|leveraged]] trade, but more likely will account for capital gains or [[stamp duty]] payabel by the broker on the underlying [[Hedge Position - Equity Derivatives Provision|hedge]] — so you might expect something like 85%. But that makes the mathematics too complicated for this old fellow, so let’s call the {{eqderivprov|Multiplier}} 100% and say the {{eqderivprov|Initial Price}} is100.
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| Let’s do two scenarios: where the stock has gone ''up'' — here say the {{eqderivprov|Final Price}} is 105, and where the stock has gone ''down'' — here, say the {{eqderivprov|Final Price}} is 95.
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| The {{eqderivprov|Rate of Return}} formula is ''({{eqderivprov|Final Price}} - {{eqderivprov|Initial Price}})/{{eqderivprov|Initial Price}}) * {{eqderivprov|Multiplier}}'', which works out as:
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| *Where the stock went ''up'': (105-100)/100 * 100% = 5/100 = {{font colour|green|+5%}}.
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| *Where the stock went ''down'': (95-100)/100 * 100% = -5/100 = {{font colour|red|-5%}}.
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| Now to calculate your {{eqderivprov|Equity Amount}}, we take the {{eqderivprov|Equity Notional Amount}} (for ease of calculation, shall we call this 1,000,000?) and times it by the {{eqderivprov|Rate of Return}}:
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| *Where the stock went ''up'': 1,000,000 * {{font colour|green|+5%}} = {{font colour|green|+50,000}}.
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| *Where the stock went ''down'': 1,000,000 * {{font colour|red|-5%}} = {{font colour|red|-50,000}}.
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