Margin Requirements

Margin Requirements for Margin Approved Securities:

Type Of Security Initial
Requirement		 Maintenance
Requirement
Margin Approved Stocks
Priced at $3 and above 50% x Market Value (M.V.) 30% x M.V.
Priced below $3 100% x M.V. 100% x M.V.
Leveraged Exchange Traded Funds*
2x Leveraged 50% on the long side, 60% on the short side same as initial
3x Leveraged 75% on the long side, 90% on the short side same as initial
*Day-Trade Buying Power (DTBP) will be reduced if you choose to day-trade ETFS. For a 2x leveraged ETF, you may use up to half of your DTBP. For a 3x ETF, you may use 1/3. Click here for an example.
Short Stocks
Priced at $5 or over 50% x M.V. Greater of $5 per share or 30% x M.V.
Priced Below $5 $5 Per Share $5 Per Share
Shorts Vs Box NA 5% x M.V.
Investment Grade Margin Approved Bonds (Not marginable if price is less than $50--except Governments)
Convertibles 50% x M.V. 30% x M.V.
Corporate / Municipals Greater of 25% x M.V. or 20% x Face Value Same as Initial
U.S. Governments Greater of 10% x M.V. or 3% x Face Same as Initial
Options
Covered Options The sale of a call cannot be in the cash amount unless the underlying security is long in the account prior to the sale.
Naked Equity Options

(Must be done in Margin Account)		 Puts:
The greater of 25% of the underlying security, less any out of the money, plus the premium;
or 15% of the strike price plus the premium.

Calls:
The greater of 25% of the underlying security, less any out of the money, plus the premium;
or 15% of the underlying security price plus the premium.		 Same as initial.
Spreads

(Must be done in Margin account)		 Debit Spread (Bull Spread):
100% of the debit and minimum equity of $2000.

Credit Spread (Bear Spread):
Lesser of uncovered requirement as above, or difference in strike price.		 Same as initial.
  • A signed margin and/or option agreement must be on file prior to first trade.
  • All margin accounts require initial equity of at least $2000.
  • Requirements apply to diversified accounts only, which are normally subject to a 30% requirment. Concentrated accounts are subject to higher requirements, usually 50%. A concentrated account is defined as any account where one position is equal to or greater than 60% of total market value.
  • Certain issues may be subject to higher requirements due to market condtions such as liquidity and volatility.
    Current list of higher requirement stocks.
  • Naked call accounts require $25,000 equity over and above requirement.
  • Naked put accounts require $10,000 equity over and above requirement, not to exceed 100% of assignment costs.
  • Requirements are subject to change without notice.
  • A client may not be permitted to use the full value of covered option premiums for margin maintenance when the non-intrinsic portion of the option's value is deemed to be significant and or disproportionate to the overall price of the contract.

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