What are the requirements for margin accounts?

Margin Requirements

For a general guidance on our margin requirements for margin approved securities, please see the table below.

For Margin Approved Stocks:

Type of Security	Initial Requirement	Maintenance Requirement	Day Trade Requirement
Priced above $5	50% * M.V.	25% * M.V.	25% * M.V.
Priced b/w $3 & $4.99	50% * M.V.	50% * M.V.	25% * M.V.
Priced below $2.99	100% * M.V.	100% * M.V.	25% * M.V.
2x Leveraged ETFs	50% * M.V.	50% * M.V.	50% * M.V.
3x Leveraged ETFs	75% * M.V.	75% * M.V.	75% * M.V.

For Short Stocks:

Type of Security	Initial Requirement	Maintenance Requirement	Day Trade Requirement
Priced above $16.625	30% * M.V.	30% * M.V.	25% * M.V.
Priced b/w $5 & $16.625	$5 per share	$5 per share	25% * M.V.
Priced b/w $2.51 & $4.99	100% * M.V.	100% * M.V.	25% * M.V.
Priced below $2.50	$2.50 per share	$2.50 per share	25% * M.V.
2x Leveraged ETFs	60% * M.V.	60% * M.V.	50% * M.V.
3x Leveraged ETFs	90% * M.V.	90% * M.V.	75% * M.V.

Please note that at any time the initial and maintenance requirements on any security or exact security can change without prior notice and can go into effect immediately. Furthermore, accounts whose account equity falls below the required maintenance requirement can be liquidated without prior notice. To prevent forced liquidations, we advise clients to keep a buffer above the minimum equity requirement.

For short positions, the margin requirements will vary depending on the type of security. Margin requirements for specific stocks can change without prior notice.

For applying for margin you should have a clear understanding of the rules and potential risks associated with margin, such as the pattern day trading rule, day-trading buying power versus overnight buying power, and margin calls. Margin trading increases the risk of loss and includes the possibility of a forced sale if account equity drops below required levels.

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