Margin Requirements
Although Scottrade's house maintenance requirement is typically 30%, we have higher requirements for certain stocks based on the stock's current trading price and volatility. We also enforce the Fed requirement, or the initial equity level required to enter into a trade. The table below outlines the initial and maintenance requirements for different types of securities.
|
Security Type |
Initial (Fed) Requirement |
Maintenance Requirement |
|
Common and Preferred Stock – Stock Price: $5 and Up |
50% of Market Value |
30% of Market Value |
|
Common and Preferred Stock – Stock Price: $3.00 - $4.99 |
50% of Market Value |
50% of Market Value |
|
Common and Preferred Stock – Stock Price: $0.01 - $2.99 |
Non-marginable at Scottrade |
100% (non-marginable) |
|
Closed-End Mutual Funds |
50% of Market Value
|
Maintenance requirements treated the same as common stock (see above) |
|
Open-End Mutual Funds; Unit Investment Trusts |
Not marginable for the first 30 days of being listed; after 30 days, 50% of market value |
Maintenance requirements treated the same as common stock (see above) |
|
Post Initial Public Offering |
50% of Market Value (as long as the stock is marginable) |
50% maintenance requirement for the first 30 days |
|
Short Stock - Stock Price: $14.30 and Up |
50% of Market Value |
35% of Market Value |
|
Short Stock – Stock Price: $5.00 - $14.29 |
50% of Market Value |
$5 Per Share |
|
Short Stock – Stock Price: $0.01 - $4.99 |
You cannot initially short a position below $5.00 per share. |
Greater of 100% of the market value or $2.50 per share |
|
Listed, approved OTC convertible bonds & approved OTC nonconvertible bonds trading with warrants attached |
50% of Total Cost |
25% of Market Value |
|
U.S. Government Obligations |
Initial requirement is based on years to maturity.
Less than one year: 1% total cost
One- Three Years: 2% total cost
Three – Five Years: 3% total cost
Five – 10 Years: 4% total cost
10 – 20 Years: 5% total cost
20+ Years: 6% total cost |
Maintenance requirement is based on years to maturity.
Less than one year: 1% market value
One- Three Years: 2% market value
Three – Five Years: 3% market value
Five – 10 Years: 4% market value
10 – 20 Years: 5% market value
20+ Years: 6% market value |
|
State and Municipal Bonds |
Greater of 15% of the total cost or 7% of principal |
Greater of 15% of current market value or 7% of principal |
|
Listed and Qualified Unlisted Margin Debt Securities |
Greater of 20% of the total cost or 7% of principal |
Greater of 20% of current market value or 7% principal
|
|
Options |
100% of Market Value |
100% of Market Value |
An additional 20% requirement is added to all international accounts.
Individual stocks may also be subject to a higher maintenance requirement. A list of those stocks can be found in the Message Center under Global Messages.
You cannot initially short a position below $5.00 per share. The short maintenance requirement in this case refers to positions that have decreased in market value since your original transaction.
