What is Portfolio Margin (PM)
Access to greater leverage
Portfolio Margin allows customers with an eligible margin account (The Works) access to a higher amount of leverage.
What is the minimum to apply for PM?
Must have The Works and have $250,000 in net liq
Currently, you will need to maintain $250,000 in your securities account to keep your PM status. Eventually, the requirement will be $150,000. Another thing to keep in mind is that if you are holding futures positions, the value of your futures account will NOT count towards the $250,000 securities minimum due to the way your futures account and securities account are handled.
What do I need to maintain a Portfolio Margin Account?
Must maintain at least $250,000 to maintain PM
PM disables when the end of day (EOD) net liq drops below $250,000. Accounts with an EOD net liq of $250,000 or less will receive a margin call the morning of the next trading day.
How do I apply for Portfolio Margin (PM)?
Please reach out to us at email@example.com
Although PM is not publicly available, eligible customers that wish to apply for PM must reach out to us at firstname.lastname@example.org during our soft opening stage. During this stage, only individual, international, and joint accounts may apply for Portfolio Margin.
We plan on releasing PM for entity accounts (namely C-Corps, S-Corps, Trusts, LLCs, and Partnerships) soon.
What is the difference between a standard margin account and a portfolio margin (PM) account?
2:1 leverage vs. 6:1 leverage
The buying requirement for standard margin accounts governs by FINRA's Regulation-T that allows 2:1 leverage, namely 50% initial margin and 25% maintenance. On the other hand, Portfolio Margin accounts base on the Theoretical Intermarket Margining System (TIMS) margin methodology, which is a risk-based approach, thus allowing 6:1 leverage. Unlike a standard margin account that is subject to a fixed initial and maintenance requirement percentage, PM accounts take a risk-based approach.
For example, let's use a $500,000 account.
- Options buying power: $500,000
- Stock buying power: $1,000,000
- Options buying power: $3,000,000
- Stock buying power: $6,000,000