Margin Requirements: Securities
Stocks
| Price |
Initial |
Maintenance |
| $4 and above |
50% |
35% |
| below $4 |
100% |
100% |
| Concentrated Position |
50% |
40%(min) or greater |
Volatile/Illiquid Listed
Security over $4 |
50% |
50% |
Options (Equity & Index)
| Long |
100% (non-marginable) |
| Naked Calls |
(25% of the underlying market value) -
(out-of-the-money) + (the premium) but not less than 10% of the underlying
market value + (the premium) |
| Naked Puts |
(25% of the underlying market value) -
(out-of-the-money) + (the premium) but not less than 10% of the strike
+ (the premium)
|
| Credit Spreads |
(100% of the difference between
the strike prices) x (the quantity) |
| Debit Spreads |
100% of the debit amount |
| Long Butterfly |
100% of the debit amount |
| Short Straddle |
(The greater of the naked put or
naked call requirement) + (the current premium of the leg with the lower requirement) |
| Long Condors |
100% of the debit amount |
| Short Iron Butterflies/Condors |
(one of the short verticals of the iron wingspread) |
Minimum Equity Requirements
| MARGIN ACCOUNT |
$2,000 |
| SHORT STOCK SALES |
$2,000 |
| NAKED CALLS/PUTS |
$25,000 |
| DAY TRADING |
$25,000 |
Debit Interest Rates*
| Margin Debit Range |
Calculation of Margin (Debit) Interest |
| $0 - $25,000 |
Fed Fund Rate + 5.50 |
| $25,001 - $125,000 |
Fed Fund Rate + 5.00 |
| $125,001 - $250,000 |
Fed Fund Rate + 4.75 |
| $250,001 - $1,000,000 |
Fed Fund Rate + 4.50 |
| >$1,000,000 |
Fed Fund Rate + 4.25 |
Credit Interest Rates
| Credit Interest Range |
Calculation of Credit Interest |
| $0 - Any Amount |
Fed Fund Rate - 1.25 |
*
Rates are updated daily and subject to change at any time without notice. Margin Requirements apply to accounts cleared
through Terra Nova Trading, L.L.C
**
Rates are updated weekly and are subject to change at any time without notice. Broker call rate can be found in the Wall
Street Journal under Money Rates (Call Money)
