Normally the stocks that have the tendency to be unpredictable have special margin, which means the value changes significantly. The margin requirements simply imply that it has a tendency to take a dip before they will be able to make additional investment.2016-05-17
What does special margin requirements mean TD Ameritrade?
What is concentration? There are special maintenance requirements in cases where 50% or more of a total portfolio is concentrated into a single margin position. When this occurs, TD Ameritrade checks to see whether: ... That single position's market value is greater than or equal to the total equity in a margin account.
What does it mean when a stock has a special maintenance requirement?
What is a Special Margin requirement? Some securities have special maintenance requirements that require you to have a higher percentage of equity in your account in order to hold them on margin. Typically, they are placed on positions held in the account that pose a greater risk.
What does special margin requirements mean on TD Ameritrade?
There are special maintenance requirements in cases where 50% or more of a total portfolio is concentrated into a single margin position. When this occurs, TD Ameritrade checks to see whether: ... That single position's market value is greater than or equal to the total equity in a margin account.
What is margin maintenance requirement TD Ameritrade?
Based upon the general maintenance requirements given above, the margin maintenance requirement would be 30% or $1,500. If the stock price fell to $2, the margin maintenance requirement would be 100% or $2,000, and TD Ameritrade, Inc. would issue a margin call for $1,000.
What does special margin requirements mean?
Normally the stocks that have the tendency to be unpredictable have special margin, which means the value changes significantly. The margin requirements simply imply that it has a tendency to take a dip before they will be able to make additional investment.2016-05-17
What are margin concentration requirements?
Concentration guidelines are limits on the amount that can be borrowed against a security, or on the maximum dollar value of a short position. Example: You want to buy a security with a margin requirement of 30%. ... The amount of money you can borrow (or margin) is determined by the securities you hold.