Barron's 4.5 Stars 2014 Open an Account Button Contact Us Login Log In Log into

 

 

What is your margin rule for stocks trading below $5?


 

 

Margin Rules for Low Priced Stocks: Overview 

 
    

Place Trade does not have a special rule regarding stocks that trade below $5. Although other brokerage firms may have a house rule regarding stocks trading below $5, PT does not employ such a rule.

 
 

 

 
 

Background:

 
    

Although Place Trade does not have a special rule regarding stocks that trade below $5, there are other PT-specific rules to consider in this scenario. 

Long Positions:

In general, PT would not have a special rule for long positions in stock trading below $5, as long as they are exchange-listed. Once a stock is delisted from one of the exchanges and moved to the OTC market, it would be subject to a 100% margin requirement, since the stock would no longer be considered marginable. 

Also for long positions, the maintenance margin requirement is 30% of the stock value or $2,000, whichever is greater.

 

Short Positions:

For short positions, the maintenance requirement on stock greater than $5, is $5 per share or 30% of the stock value, whichever is greater

For short positions in stock where the last sale price/share is less than $5, then the maintenance margin requirement is $2.50 per share or 100% of the stock value, whichever is greater

 

 
 

What are your margin rates? Who has the lowest margin rates?


Awesome Client Services     Best Execution     Deep Discount Commissions     Margin Requirements

Extremely Low Margin Rates

What are your margin rates?

 

Place Trade is honored to have been named to Barron's List of the Best Online Brokers for 3 years in a row!

 

Barron's Best Online Brokers

 

 

Best Online Brokers1 ~ Barron's Magazine

 

 

Awarded 4 1/2 Stars2

 

Ranked #3 Overall Best Online Broker2

 

Best for Frequent Traders2

 

Lowest Monthly Cost for Frequent Traders3

 

 


 

 

Additionally recognized by Barron's Magazine among the top firms named as:

 

1Best Online Brokers 2012, 2013 & 2014

 

2Best for Frequent Traders, Awarded 4 1/2 Stars and Ranked #3 Overall Best Online Broker (2013, 2014)

 

3Lowest Monthly Cost for Frequent Traders 2013

 

 

 

 

s5box


Learn more about retirement planning by visiting some of the links below:

Roth IRA

SEP IRA

SIMPLE IRA

Traditional IRA

Qualified Plans

Rollover IRAs

Find out how Place Trade can help you get the most out of your college planning by visiting some of the links below:


Coverdell ESA

529 College Savings Plans

UGMA/UTMA Accounts