Margin Requirements
Margin Requirements
Long Stock
| Price | Initial Requirement | Maintenance Requirement |
| $3.00 or less | 100% | 100% |
| $3.01 - $6.00 | 50% | 50% |
| $6.01 or more | 50% | 30%* |
* Please note that for concentrated accounts, when one security constitutes more than 50% of the total market value, the maintenance requirement is 40% on stock priced at $6.01 or more.
Short Stock
| Price | Initial Requirement | Maintenance Requirement |
| $3.00 - $5.00 | Cannot open short positions for stock priced below $5.00. | 100% |
| $5.01 or more | The greater of $5.00 or 50% | The greater of $5.00 or 40% |
Bonds
| Types of Bonds | Initial Requirement | Maintenance Requirement |
| Convertible & Municipal | 50% | 30% |
| Corporate | 50% | 50% |
| Treasury | 10% | 10% |
Options
| Option Order | Initial Requirement | Maintenance Requirement | |
| Short Calls | Option premium | + | (Whichever is greater):
35% of the underlying market price minus out-of-the-money OR 10% of the underlying market price |
| Short Puts | Option premium | + | (Whichever is greater):
35% of the underlying market price minus out-of-the-money OR 10% of the strike price |
| Credit Spreads* | Difference between Strike Prices | + | Option Premium x Number of Contracts |
| Debit Spreads* | Net debit paid multiplied by the number of contracts | ||
| Short Straddles | Short Call or Short Put Requirement (whichever is greater) | + | Premium received before the other leg |
* The margin requirement for Short Calls and Puts will apply in those cases when the Short Leg expires AFTER the Long Leg.
| Minimum Equity Requirements for Options | |
| Short Calls: | $100,000 |
| Short Puts: | $25,000 |
| Spreads: | $5,000 (when Short Leg expires AT or BEFORE Long Leg expires) $25,000 for Put Spreads (when Short Leg expires AFTER Long Leg expires) $100,000 for Call Spreads (when Short Leg expires AFTER Long Leg expires) |
| Credit Straddles: | $100,000 |
NOTE:
- Pink Sheets, OTC Bulletin Board (OTC-BB) and Leveraged ETFs / Stocks are NOT margin eligible.
- Click here to view all U.S. listed Chinese securities held at a 100% margin requirement.
- Maintenance requirements may be set higher for certain stocks if considered necessary by our clearing firm.
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