Stock Margin Requirements

The NYSE and NASD 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.

The following table shows stock margin requirements for initial (at the time of trade), and maintenance (when holding positions). For detailed information on Sonray Global's calculation methodology and where to find margin requirement information in the TWS, see our Sonray Global Margin Overview page.

NOTE: The following formulas make use of the functions Maximum (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 If function checks a condition and if true uses formula y and if false formula z. As an example If (20 < 0, 30, 60) would return the value 60. Note also that Margin requirements quoted in US dollars may also be satisfied with a Non-US Dollar equivalent.

Real-time Initial and Maintenance Margin Requirement

Overnight Reg T Initial Requirement

Long Marginable Positions: Maximum (25%*stock value, $2,000).

Short Marginable Positions:
If last sale price/share >=$5 then maximum ($5 per share, 30%*stock value). If last sale price/share < $5 then maximum ($2.50 per share, 100%*stock value). Short sale proceeds are applied to cash and the short position value is subtracted from equity.

Non-Marginable Long or Short Positions:
Maximum (100%*stock value, $2,000).

Long Marginable Positions:
Maximum (50%*stock value, $2,000).

Short Marginable Positions:
Maximum (50%*stock value, short sale maintenance requirement). Short sale proceeds are applied to cash and the short position value is subtracted from equity.

Non-Marginable Long or Short Positions:
Maximum (100%*stock value, $2,000).

Note: IRA margin accounts must always pay for securities in full using available equity with loan value.