the below may vary, based on your own broker's rules and policies.
NOTE: Entering heavily-leveraged (ie, margin) positions is not recommended in all circumstances. Before trading on margin, understand the risks and CONSULT YOUR FINANCIAL ADVISOR.
GLTA,
R.
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Many well known stocks trading over $2 have a 30% margin requirement, which means that to buy $100 worth of stock you can put $30 towards the purchase and borrow the $70.
[Brokerage] client margin accounts are margined according to rules and guidelines set by Investment Industry Regulatory Organization of Canada (IIROC) and [Brokerage] internal risk management protocols.
Buying power is set each morning based on your equity balance, less margin charges on positions held overnight. In order to be able to trade on margin, the total equity in your account must equal at least USD $500.
Margin requirements on stocks and options positions held overnight:
| Share price |
Margin requirements |
| · Reduced margin eligible securities* |
30% of the market value |
| · Securities selling at $2.00 or more |
50% of the market value |
| · Securities selling at $1.75 to $1.99 |
60% of the market value |
| · Securities selling at $1.50 to $1.74 |
80% of the market value |
| · Less than $1.50 |
100% |
*Canadian securities' eligibility for reduced margin is determined by Investment Industry Regulatory Organization of Canada (IIROC) on a quarterly basis. Most major US stocks with listed options are eligible for reduced margin as well. Please note that [Brokerage] reserves the right to margin certain securities it deems risky at higher rates than listed in the table above.
