Margin
Some Minimum Maintenance Requirements
Maintenance - equity required in a margin account.
Margin is a NASD
/ NYSE requirement.
Maintenance calls must be met immediately and with cash or fully paid securities.
Or they can liquidate some securities for you.
Currently the initial margin requirement for NYSE or NASDAQ is $2,000 or 100% of the purchase price (whichever is less).
As of 12/13/99 there is some buzz about raising the margin requirement to $25,000 for day traders - ouch!
Minimum maintenance requirement for a long account is 25% of the current market value.
Minimum maintenance requirement for a short account is 30% of the current market value or $5 per share (whichever is higher)
Minimum maintenance requirement for index options (broad index) is the premium plus 15% less the amount it is out of the money; or the premium plus 10% of its current market value.
Minimum maintenance requirement for index options (narrow index) is the premium plus 20% of the current market value less the amount it is out of the money; or the premium plus 10% of its current market value.
Minimum maintenance requirement for options that are in the money is 20% of the current market value plus the premium. (The premium is not equal to the cash that needs to be deposited if options are sold)
Minimum maintenance requirement for options that are out of the money is 10% of the current market value plus current premium or 20% of the current market value plus the current premium less the amount that is out of the money. (whichever is more)
Minimum maintenance requirement on an arbitrage account is 10% of the long position.
Minimum maintenance requirement on US government obligations - from 1% to 6%.
Minimum maintenance requirement on municipal bonds = 7% of principal or 15% of market value (whichever is greater)
Minimum maintenance requirement on convertible bonds is 20%
Minimum maintenance requirement on non convertible bonds is 20% of the current market value or 7% of the face value (whichever is greater)
Minimum maintenance requirement on Issue D stock is the same as regular stock (50% FRB) (NYSE,NASD require a 25% deposit if bought in a cash account).
Minimum maintenance requirement on when issued stock 50% current market value (margin account) 25% current market value (cash account)
