Trading on Margin
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What Types of Securities and Margin Trading are available at Place Trade?
Place Trade (PT) offers both Reg T and Portfolio Margin trading for qualified clients. For approved clients, PT also offers the ability to trade unsettled funds within special IRA accounts called Margin IRAs. To learn more about what type of securities may be held in Reg T and Portfolio Margin accounts along with a brief description of the associated details please review the information below. Reg T Margin account holders may borrow to support:
Stocks/Warrants/ETFsMargin requirements are computed on a formula-based real-time basis, with immediate position liquidation if the minimum maintenance margin requirement is not met. Purchase and sale proceeds are immediately recognized. US securities regulations require at least USD 25,000 (or USD equivalent) in equity to day trade. BondsBorrowing to support bond trading. Margin requirements are computed on a real-time basis, with immediate position liquidation if the minimum maintenance margin is not met. Purchase and sale proceeds are immediately recognized. Shorting of bonds is not allowed. OptionsFor buying options, you must deposit the entire premium plus commissions. For selling options and other strategy-based combinations, the margin requirements and commissions must be covered. Option market value may never be used for the purpose of borrowing funds. You must have stocks margin trading permissions in order to have options margin trading permissions. Mutual FundsBorrowing to support Mutual Funds may only be done 30 days after the purchase of the fund. Shorting Mutual Funds is never allowed. Net Asset Value is computed once per day at closing by the funds at which time your margin requirement and equity will be updated. Liquidation will occur on an end-of-day basis if minimums aren't met. Purchase and sales proceeds are recognized at the end of the day when the Mutual Fund order is submitted and confirmation received.
Portfolio Margin account holders may borrow to support:
Stocks/Warrants/ETFsMargin is based on the largest potential loss found by valuing the portfolio over a range of underlying prices and volatilities on a real-time basis. Immediate position liquidation will occur if the minimum maintenance margin requirement is not met. Purchase and sale proceeds are immediately recognized. US securities regulations require at least USD 100,000 (or USD equivalent) for this account. Accounts are required to have a balance of at minimum USD 1,000,000 (or USD equivalent). If account equity falls below the Portfolio Margin requirements, Reg T margin requirements will apply. BondsBorrowing to support bond trading. Margin requirements are computed on a real-time basis, with immediate position liquidation if the minimum maintenance margin is not met. Purchase and sale proceeds are immediately recognized. Shorting of bonds is not allowed. OptionsMargin is based on the largest potential loss found by valuing the portfolio over a range of underlying prices and volatilities on a real-time basis. Immediate position liquidation will occur if the minimum maintenance margin requirement is not met. Purchase and sale proceeds are immediately recognized. US securities regulations require at least USD 100,000 (or USD equivalent) for this account. Accounts are required to have a balance of at minimum USD 1,000,000 (or USD equivalent). If account equity falls below the Portfolio Margin requirements, Reg T margin requirements will apply. Mutual FundsMargin is based on the largest potential loss found by valuing the portfolio over a range of underlying prices and volatilities on a real-time basis. Immediate position liquidation will occur if the minimum maintenance margin requirement is not met. Purchase and sale proceeds are immediately recognized. US securities regulations require at least USD 100,000 (or USD equivalent) for this account. Accounts are required to have a balance of at minimum USD 1,000,000 (or USD equivalent). If account equity falls below the Portfolio Margin requirements, Reg T margin requirements will apply.
Reg T Margin IRA accounts
Reg T Margin IRA accounts are also available at Place Trade. These accounts allow clients to trade with unsettled funds in their IRAs. Clients must be approved for margin accounts and must specifically request that they have approval for a Margin IRA. Request an upgrade within Account Management under Trading Configuration.
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