Margin Requirements
Long Position Requirements – Margin
Initial Margin |
25% * Trade Value |
Maintenance Margin |
30% * Market Value |
Reg T Requirements |
50%* Trade Value |
Leverage ETFs |
Initial Requirement * Leverage Factor |
Short Position Requirements – Margin
Initial Margin | 30% * Trade Value |
Maintenance Margin |
|
Reg T Requirements |
|
Leveraged ETFs | Initial Margin * Leverage Factor |
Long or Short Position Requirements – Cash
Initial Margin |
100% of Trade Value |
Maintenance Margin |
100% of Market value |
House margin requirements may be greater than rule-based margin requirements shown above and are subject to change at any time
Margin Call Types
Exchange Call
This call is issued when your account’s marginable equity fails to meet the exchange requirements for holding securities on margin.
This can be met with cash deposit, liquidation, or appreciation. If the call is not met prior to an hour before the close on the due date a liquidation may be initiated. Buying power will be unavailable until the day after this call is satisfied.
House/Maintenance Call
This call is issued when your account’s marginable equity fails to meet the house/maintenance requirements for holding securities on margin.
This can be met with cash deposit, liquidation, or appreciation. If the call is not met prior to an hour before the close on the due date a liquidation may be initiated. Buying power will be unavailable until the day after this call is satisfied.
Initial Call / Fed Reg T
A Reg T call may be issued when, using margin, an opening purchase or short sell transaction does not satisfy the minimum initial equity requirements per Regulation T. The initial requirement is 50% of the total cost of the trade.
An initial Fed Reg T call can be satisfied by liquidation or a cash deposit. Liquidating shares would be considered a liquidation violation. The third liquidation violation in one year will restrict the account for 90 days.
Day Trading Call
You will receive this call if you exceed your start-of-day, day trade buying power (DTBP).
This call needs to be met with a cash deposit. Once the funds are booked in, the account can trade the following day. If the call is not met by the due date, the account will be restricted for 90 days.