Place Trade Financial - Lowest Margin Rates - Trade Online or Get Advice from Experienced Financial Professionals Buy Stocks - Place Trade Financial - Lowest Margin Rates - Trade Online or Get Advice from Experienced Financial Professionals Buy Stocks

FINRA and the NYSE have imposed rules to limit small investor (accounts with less than $25,000 in net equity) day trading. Clients that qualify as Pattern Day Traders are subject to Day Trading Restrictions for US Securities.

Place Trade utilizes option combination margin optimization software to try to create the minimum margin requirement. However, due to the system requirements required to determine the optimal solution, we cannot always guarantee the optimal combination in all cases.

Please Note: These formulas make use of the functions Maximum (x, y, ..), Minimum (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 Minimum function returns the least value of all parameters separated by commas within the parenthesis As an example, Minimum (500, 2000, 1500) would return the value of 500. 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.

Margin Requirements for each type of Margin Combination:

Please note that the information and calculations below apply only to Reg T, Reg T Margin - IRA and Cash Accounts.

Please see our Portfolio Margin page for US Options requirements in a Portfolio Margin account.

Combination Type	Margin Accounts		Cash Accounts	Reg T Margin - IRA
Combination Type	PT initial/Reg T End of Day	PT Maintenance	Cash Accounts	Reg T Margin - IRA
Long Call or Put
	None	Same as Initial	Same as Initial	Same as Margin Account
Short Naked Call
	Stock Options^[1] Call Price + Maximum((20%^[2] * Underlying Price - Out of the Money Amount), (10% * Underlying Price)) Index Options^[1] Call Price + Maximum((15%^[3] * Underlying Price - Out of the Money Amount), (10% * Underlying Price)) World Currency Options<sup>[1] Call Price + Maximum((4%^[2] * Underlying Price - Out of the Money Amount), (0.75% * Underlying Price)) Cash Basket Option^[1] In the Money Amount	Same as Initial	N/A	Same as Cash Account
Short Naked Put
	Stock Options^[1] Put Price + Maximum((20%^[2] * Underlying Price - Out of the Money Amount), (10% * Strike Price)) Index Options^[1] Put Price + Maximum((15%^[3] * Underlying Price - Out of the Money Amount), (10% * Strike Price)) World Currency Options^[1] Put Price + Maximum((4%^[2] * Underlying Price - Out of the Money Amount), (0.75% * Underlying Price)) Cash Basket Option^[1] In the Money Amount	Same as Initial	Put Strike Price	Same as Cash Account
Covered Calls and Puts
Short an option with an equity position held to cover full exercise upon assignment of the option contract.	Initial Stock Margin Requirement + In the Money Amount^[4]	Initial Stock Margin Requirement + In the Money Amount^[4]	Covered Calls Stock paid in full Covered Puts N/A	Covered Calls None Covered Puts N/A
Call Spread
A long and short position of equal number of calls on the same underlying (and same multiplier) if the long position expires on or after the short position.	(Maximum ((Strike Long Call - Strike Short Call), 0)	Same as Initial	Same as Initial if both options are European-style cash-settled Otherwise, N/A.	Same as Margin Account
Put Spread
A long and short position of equal number of puts on the same underlying (and same multiplier) if the long position expires on or after the short position.	(Maximum (Short Put Strike - Long Put Strike, 0))	Same as Initial	Same as Margin Account Both options must be European style cash settled.	Same as Margin Account
Collar
Long put and long underlying with short call. Put and call must have same expiration date, same underlying (and same multiplier), and put exercise price must be lower than call exercise price.	Initial Stock Margin Requirement + In the Money Call Amount Equity with Loan Value of Long Stock Minimum (Current Market Value, Call Aggregate Exercise Price)	Minimum (((10% * Put Exercise Price) + Out of the-Money Put Amount), (25% * Call Exercise Price))	N/A	N/A
Long Call and Put
Buy a call and a put.	Margined as two long options.	Same as Initial	Same as Margin Account	Same as Margin Account
Long Butterfly
Two short options of the same series (class, multiplier, strike price, expiration) offset by one long option of the same type (put or call) with a higher strike price and one long option of the same type with a lower strike price. All component options must have the same expiration, same underlying, and intervals between exercise prices must be equal.	None	Same as Initial	None Both options must be European-style cash-settled.	Same as Margin Account
Short Butterfly Put
Two long put options of the same series offset by one short put option with a higher strike price and one short put option with a lower strike price. All component options must have the same expiration, same underlying, and intervals between exercise prices must be equal.	((Highest Put Options Strike - Middle Put Options Strike) + (Middle Put Options Strike = Lowest Put Option Strike))	Same as Initial	N/A	N/A
Short Butterfly Call
Two long call options of the same series offset by one short call option with a higher strike price and one short call option with a lower strike price. All component options must have the same expiration, same underlying, and intervals between exercise prices must be equal.	((Highest Call Options Strike - Middle Call Options Strike) + (Middle Call Options Strike = Lowest Call Option Strike))	Must maintain initial margin.	N/A	N/A
Long Box Spread
Long call and short put with the same exercise price (“buy side”) coupled with a long put and short call with the same exercise price (“sell side”). Buy side exercise price is lower than the sell side exercise price. All component options must have the same expiration, and underlying (multiplier).	None	Same as Initial	N/A	Same as Margin Account
Short Box Spread
Long call and short put with the same exercise price ("buy side") coupled with a long put and short call with the same exercise price (“sell side”). Buy side exercise price is higher than the sell side exercise price. All component options must have the same expiration, and underlying (multiplier).	American Style Maximum (((Long Call Price + Long Put Price - Short Call Price = Short Put Price) * -102%), (Long Call Strike - Short Call Strike)) European Style Long Call Strike - Short Call Strike	Same as Initial	N/A	Same as Margin Account
Conversion
Long put and long underlying with short call. Put and call must have the same expiration date, underlying (multiplier), and exercise price.	Initial Stock Margin Requirement Equity with Loan Value of Long Stock Minimum (Current Market Value, Call Aggregate Exercise Price)	10% * Strike Price	N/A	N/A
Reverse Conversion
Long call and short underlying with short put. Put and call must have same expiration date, underlying (multiplier), and exercise price.	In the Money Put Amount + Initial Stock Margin Requirement	In the Money Put Amount + (10% * Strike Price)	N/A	N/A
Protective Put
Long Put and Long Underlying.	Initial Stock Margin Requirement	Minimum (((10% * Put Strike Price) + Put Out of the Money Amount), Long Stock Maintenance Requirement	N/A	N/A
Protective Call
Long Call and Short Underlying.	Initial Standard Stock Margin Requirement	Minimum (((10% * Call Strike Price) + Call Out of the Money Amount), Short Stock Maintenance Requirement	N/A	N/A
Iron Condor
Sell a put, buy put, sell a call, buy a call.	Short Put Strike - Long Put Strike	Same as Initial	If all options are European and cash-settled, same as margin account.	Same as Margin Account