Account Types
When opening your account you have a choice of Reg T Margin, Reg T IRA, Cash, or Portfolio Margin account types. For more specific information on margin calculations, see our Margin Requirements page. The following table provides a quick-glance comparison of these accounts. View the account type page from the links above for more details.
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Reg T Margin |
Reg T Margin – IRA |
Cash (including IRA accounts) |
Portfolio Margin |
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Stocks and Warrants |
◼ Margin is calculated on a real-time basis. ◼ Immediate position liquidation if minimum maintenance margin requirement is not met. ◼ Purchase and sale proceeds available immediately. ◼ US securities regulations require a minimum USD 25,000 in equity or equivalent to day trade.
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◼ Cannot borrow cash i.e. have a debit balance or short stocks. |
◼ Account must have enough cash to cover the cost of stock plus commissions. ◼ Shorting not allowed. ◼ Cash from the sale of stocks is available three business days after the trade date. ◼ Account may trade in different currencies but must have the settled cash balance to enter trades. ◼ When authorizing market, relative and VWAP orders, a 5% cash cushion is required to compensate for market movements.
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◼ Margin is calculated on a real-time basis. ◼ Immediate position liquidation will occur if the minimum maintenance margin requirement is not met. ◼ Purchase and sale proceeds available immediately. ◼ US securities regulations require a minimum USD 100,0003 or equivalent for this account, or Reg T margin requirements will apply.
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Bonds |
◼ Margin is calculated on a real-time basis. ◼ Immediate position liquidation if minimum maintenance margin is not met. ◼ Shorting not allowed. ◼ Purchase and sale proceeds available immediately.
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◼ Cannot borrow cash i.e. have a debit balance or short stocks. |
◼ Account must have enough cash to cover the cost of bonds plus commissions. ◼ Shorting not allowed. ◼ Cash from the sale of bonds is available three business days after the trade date.
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◼ Same as Reg T Margin Requirements. |
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Stock and Cash Index Options |
◼ Margin is calculated on a real-time basis. ◼ Immediate position liquidation if minimum maintenance margin requirement is not met. ◼ Purchase and sale proceeds available immediately. ◼ To purchase options the entire premium plus commissions must be deposited. ◼ To sell options and other strategy-based combos, the Options Margin Requirements and commissions must be covered. ◼ US Securities regulations require at least 25,000 USD in equity or equivalent to day trade. ◼ Option market value may never be used for the purpose of borrowing funds.
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Cannot borrow cash i.e. have a debit balance or short stocks. For information on combination strategies that require borrowing and consequently are not available, see the Reg T Margin IRA column on the Options Margin Requirements page. |
◼ Full payment required for all call and put purchases. ◼ Covered call writing is allowed, but the underlying stock must be available and is then restricted. ◼ Naked put writing is allowed, but the funds must be available and then are restricted. ◼ Cash from the sale of options is available one business day after the trade date.
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◼ Same as Portfolio Margin requirements for stocks. |
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Mutual Funds |
◼ Margin updated once per day at closing of funds. ◼ Position liquidation on end-of-day basis if minimum maintenance margin requirement is not met. ◼ Purchase and sale proceeds recognized end-of-day when order has been submitted and received. ◼ Shorting not allowed. ◼ Borrowing allowed 30 days after purchase of fund.
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◼ Cannot borrow cash i.e. have a debit balance or short stocks. |
◼ Account must have enough cash to cover the cost of funds plus commissions. ◼ Shorting not allowed. ◼ Cash from the sale of funds is available one business day after the trade date. ◼ Only available to US legal residents.
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◼ Same as Portfolio Margin requirements for stocks. |
