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Margin Requirements - US Stock

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US Stocks  Margin Requirements - Leveraged ETF Products

Canadian Stocks 

 Other Stocks 

 Special Margin Stocks 

 Canadian Stock & Index Options Requirements 

 

US Stocks


The following table lists margin calculations for Reg T Margin, Cash and Reg T Margin - IRA Accounts. Please see our Portfolio Margin page for US Stock requirements in a Portfolio Margin account.

The NYSE and FINRA have imposed rules to limit small investor day trading. Customers that these organizations classify as Pattern Day Traders are subject to special Day Trading Restrictions for US securities.

 

  Please Note: These formulas make use of the functions Maximum (x, y, ...), Minimum (x, y, ...) and If (x, y, z). The Maximum function returns the greatest value of all parameters separated by commas within the parenthesis. As an example, Maximum (500, 2000, 1500) would return the value 2000. The Minimum function returns the least value of all parameters separated by commas within the parenthesis. As an example, Minimum (500, 2000, 1500) would return the value of 500. The 'If' function checks a condition and if true it uses formula y and if false then it uses formula z. As an example If (20 < 0, 30, 60) would return the value 60.  

 

Long Position

Short Position

Non-Marginable Long Positions

Reg T End of Day


View stock margin requirements for initial (at the time of trade), maintenance (when holding positions), and Overnight Reg T (Regulatory End of Day Requirement) time periods:

 

 

Long Position

Reg T Margin
  PT Initial Margin 25%1 * Stock Value
  Maintenance Margin Same as Initial.
  Reg T End of Day Initial Margin 50%2 * Stock Value
Cash or IRA-Cash 100% * Stock Value
IRA-Reg T Margin Same as Cash
 
 

 Margin Requirements for Stock

 

 

Short Positions

Reg T Margin
  PT Initial Margin 30%3 * Stock Value
  Maintenance Margin

30% * Stock Value if Stock Value > $16.67

$5.00 if Stock Value < $16.67 and > $5.00

100% * Stock Value if Stock Value < $5.00

$2.50 if Stock Value <= $2.50

  Reg T End of Day Initial Margin Same as Reg T End of Day for Long Positions.
Cash or IRA-Cash N/A
IRA-Reg T Margin Same as Cash
 

 
Margin Requirements for Stock

 

 

Non-Marginable Long or Short Positions

Reg T Margin
  PT Initial Margin 100% * Stock Value
  Maintenance Margin Same as Initial.
  Reg T End of Day Initial Margin Same as Initial.
Cash or IRA-Cash Same as Initial, Only Long Positions
IRA-Reg T Margin N/A

 

 Learn more about our Reg T End of Day margin calculations.

 

  • All Margin accounts must have a minimum of USD 2,000 to trade.
  • Margin requirements quoted in US dollars may also be satisfied with a Non-US Dollar equivalent.
  • PT has additional algorithms which increase the nominal margin for positions that represent a >1% holding of an individual company's shares outstanding, with full margin required for concentrations of >= 9% of a company's shares outstanding (For ETFs, full margin is required for concentrations of >= 5%). Investors should be prepared to meet the increased margin, where holdings are above 1% threshold.

 

  1. For Leveraged ETFs, Minimum(25% * Leverage Factor, 100%)
  2. For Leveraged ETFs, Minimum(50% * Leverage Factor, 100%)
  3. For Leveraged ETFs, Minimum(30% * Leverage Factor, 100%)

 
Margin Requirements for Stock

 (This chart offers the same information as provided above.)

Place Trade (PT) Margin Requirement

            Cash

   Individual or IRA

Reg T Margin - IRA

PT Initial

PT Maintenance

Reg T End of Day

Long Position

25%[1] * Stock Value

Same as Initial

50%[2] * Stock Value

100% * Stock Value

Same as Cash

Short Position

30%[3] * Stock Value

If Stock Price >= USD

5, then Maximum

(Minimum (30% *

Leverage Factor,

100%) * Price, USD 5)

If Stock Price <= 5

USD, then Maximum

(100 * Stock Value,

USD 2.50 * the number

 of shares)

Same as Reg T

End of Day for Long

Positions

N/A

Same as Cash

Non-Marginable Long or Short Position

100% * Stock Value

Same as Initial

Same as Initial

Same as Initial, Only

Long Positions

N/A                     

Notes for US Securities on Margin


Margin Requirements for Stock


Canadian Stocks and Canadian Residents Trading All Stocks

Please note that PT does not offer brokerage accounts to Canadian residents at this time.  We hope to change this in the near future and we apologize for any inconvenience that this may cause.

The following table shows stock margin requirements for initial (at the time of trade), maintenance (when holding positions), and Overnight Reg T (Regulatory End of Day Requirement) time periods.

FINRA and the NYSE have imposed rules to limit small investor day trading. Customers that these organizations classify as Pattern Day Traders are subject to special Day Trading Restrictions for US Securities.

 

                Cash

PT Initial

PT Maintenance

Reg T End of Day

Long Positions Traded on Approved Exchanges[1]

If Stock Price >= CAD 2,

then 50% * Stock Value

Same as Initial

Same as Initial

100% * Stock Value

Long Positions Eligible for Reduced Margin on Approved Exchanges[1]

If Stock P rice >= CAD 2,

then 30%[3] * Stock Value

Same as Initial

If Stock Price >= CAD 2,

then 50%[2] * Stock Value

100% * Stock Value

All Other Long Positions including Stocks < CAD 2 and TSX Venture Exchange

100% * Stock Value

Same as Initial

Same as Initial

Same as Initial

Short Positions Traded on Approved Exchanges[1]

If Stock Price >= CAD 2,

then 50% * Stock Value

Minimum Margin >= USD

2.50 * Number of Shares

Same as Initial

Same as Initial

100% * Stock Value

Short Positions Eligible for Reduced Margin on Approved Exchanges[1]

If Stock Price >= CAD 2,

then 30%[3] * Stock Value

Minimum Margin >= USD

2.50 * Number of Shares

Same as Initial

If Stock Price >= CAD 2,

then 50%[2] * Stock Value

Minimum Margin >= USD

2.50 * Number of Shares

100% * Stock Value

All Other Short Positions including Stocks < CAD 2 and TSX Venture Exchange

100% * Stock Value

Minimum Margin >= USD

2.50 * Number of Shares

Same as Initial

Same as Initial

Same as Initial

Cross-Margined Stock on the Same Underlying[4]

5% * Long Stock Value

(Long and short positions

with the same underlying

stocks, one leg cleared in

the US and the other leg

cleared in Canada.)

Same as Initial

Same as Initial

N/A

Notes Canadian Margin


Margin Requirements for Stock
Other Stocks

The following table shows stock margin requirements for initial (at the time of trade), maintenance (when holding positions), and Overnight Reg T (Regulatory End of Day Requirement) time periods.

The NYSE and FINRA have imposed rules to limit small investor day trading. Customers that these organizations classify as Pattern Day Traders are subject to special Day Trading Restrictions for US securities.

                                         Place Trade (PT) Margin Requirement

                Cash

PT Initial

PT Maintenance

Reg T End of Day

Long Positions

Margin requirements are

determined by risk-based

portfolio analysis models

specified by each exchange.

For details, visit the specific

exchange site in question.

Same as Initial

50%[1] * Stock Value

100% * Stock Value

Short Positions

Same as Initial for long

positions

Same as Initial for long

positions

Same as Reg T End of

Day for long positions

N/A


Margin Requirements for Stock


Special Margin Stocks

Place Trade may reduce the collateral value of securities (reduces marginability) for a variety of reasons, including:

* small market capitalization or small issue size

* low liquidity in the collective primary/secondary exchanges

* involvement in tenders and other corporate action

Changes in marginability are generally considered for a specific security. However, in cases of concerns about the viability or liquidity of a company, marginability reductions will apply to all securities issued by, or related to, the affected company, including bonds, derivatives, depository receipts, etc.

See the section on Decreased Marginability Calculations on the Margin Calculations page for information about large position and position concentration algorithms that may affect the margin rate applied to a given security within an account and may vary between accounts.

 Margin Requirements for Stock

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