Please note: Before trading on margin, we recommend reviewing our Margin Disclosure Statement and other Risk information.
- To open and maintain an optionsXpress margin account
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Minimum Equity Requirements Cash / Stock No Minimum Cash / Options / Stock No Minimum Margin / Options / Stock $2,000 in marginable securities or cash (Minimum required equity for leveraged transactions)
- Minimum basic maintenance equity requirements:
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- A threshold equity requirement of $2,000 in minimum account value applies to margin accounts engaging in leveraged transactions including short puts, short stock and stock purchases on margin.
- There is no threshold requirement for accounts engaging in spreads.
- For accounts engaging in uncovered (naked) equity or index call writing a minimum account value of $5,000.00 must be maintained.
- Stocks priced $5.00 and under are not eligible for credit towards margin requirements and are not credited to buying power.
- Important: If your equity drops below the minimum required, or a call is issued for any other reason, you may be required to deposit additional funds by wire, check (sent by overnight courier), or a deposit made by other prompt method of payment.
- Basic Requirements For Transactions1
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Transaction Requirement Long Stock Transactions 50% of the purchase price upon initiating the position.
40% of the market value for maintenance.
100% of the security price for stocks priced $5.00 and under.Short Stock Transactions 50% of the short value (maintenance is 40%) and $5/share requirement on Short Sales below $10/share. Covered Call Writing Requires a long stock position equal to the amount of exercisable calls. On a single order combination transaction, the long stock position requirement is not offset by the proceeds of the call until after the transaction. Equity Short Puts & Naked Calls 20% of the underlying market price + the premium - amount out of the money OR 10% of the underlying market price (or strike price for O-T-M puts) + the premium, whichever is greater. Index Short Puts & Naked Calls 15% of the underlying market price + the premium - amount out of the money OR 10% of the underlying market price (or strike price for O-T-M puts) + the premium, whichever is greater. Cash Secured Short Puts 100% of the exercisable value. Short Straddles The greater of the short put or short call requirement, plus the current premium of the leg with the lower requirement. Debit Spreads 100% of the debit amount upon initiating the transaction. Credit Spreads 100% of the difference between the strike prices multiplied by the number of contracts, credit from the proceeds included. Long Butterfly 100% of the debit amount upon initiating the transaction.
- Basic Requirements for Portfolio Transactions
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Level Equities2, Equity Options, Narrow-Based Indices Broad-Based Indices Exchange Minimums Up/down Moves of 15%
High Volatility Stocks 60% +Up/down moves of 10% House Aggressive Up/down Moves of 18%
High Volatility Stocks 60% +Up/down moves of 16% House Standard Up/down Moves of 22%
High Volatility Stocks 60% +Up/down moves of 20% House Increased Up/down Moves of 25%
High Volatility Stocks 60% +Up/down moves of 25%
- Trading Level Basic Definitions
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-1 0 1 2 3 4 5 Trading Disabled × Trading Stocks / Bonds / Mutual Funds × × × × × × Covered Call Writing / Short Stock Sales × × × × × Buying Calls and Puts / Covered Put Writing × × × × Debit Spreads × × × Credit Spreads / Equity Put Writing × × Naked Equity Call Writing / Naked Index Put & Call Writing ×
Please see the disclosures page for additional information regarding this section.
