Margin Requirements when Shorting Stocks or ETFs
Only margin accounts may short stocks or ETFs
Stock > $5.00
For stocks above $5.00 a share, the initial requirement for short stock is typically 50% or $5 a share, whichever is greater. Some stocks may have elevated margin requirements.
Stock <= $5.00
For stocks at or below $5.00 a share, the initial requirement for short stock is 100% or $2.50 a share, whichever is greater.
Maintenance Requirements when Shorting Stocks or ETFs
Stock > $5.00
For stocks above $5.00 a share, the maintenance requirement for short stock is typically 30% or $5 a share, whichever is greater. Some stocks may have elevated margin requirements, such as volatility products.
Stock <= $5.00
For stocks at or below $5.00 a share, the maintenance requirement for short stock is 100% or $2.50 a share, whichever is greater.