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)

100% on Day 1, 50% on Days 2-30, fully marginable after 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.

The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.