Reg T Margin

What is Reg T Margin?

For a Reg T Margin, an account must have at least $2,000 or USD equivalent of securities equity with loan value to open a new position. Reg T Margin allows a leverage up to a 2:1 ratio for overnight holdings and a 4:1 ratio for day trading purposes. Note: In a Reg T Margin account, SMA must be positive 10 minutes prior to the market closing in order to be within the 2:1 ratio for overnight or the account is subject to liquidation.

Where can I request to upgrade to Margin?

Log in to Account Management and select Manage Account > Settings > Configure Account > Account Type. On the Account Type page, make your selection and complete the following prompts to confirm the selection. Review and approval typically takes 24-48 business hours to complete. Once completed, you will receive a confirmation email. If you do not intend to maintain at least USD 100,000 in your account, you should not apply for a Portfolio Margin account. Note: You may switch between Portfolio and Reg T Margin. However, once margin is requested, you may not downgrade to a Cash account. Visit our How-To page for instructions.

Are mutual funds marginable?

After 30 days, yes. The maintenance margin on mutual funds is 25%.

What is the maintenance margin on short securities?

Zacks Trade uses the following maintenance margins on short securities:
30% * Stock Value if Stock Value > $16.67
$5.00 if Stock Value < $16.67 and > $5.00
100% * Stock Value if Stock Value < $5.00
$2.50 if Stock Value <= $2.50.
Please note that some stock may be subject to higher requirements.

In what cases can I be liquidated?

Two of the more common scenarios in which you can be liquidated are the following: First, if your Excess Liquidity value becomes negative. Secondly, if your SMA value is negative 10 minutes prior to the market closing. You can review a liquidation trade in your statement. The liquidation trade will appear with an “L” under the code column.

What is Zacks Trade's Initial maintenance margin?

The initial maintenance margin on stocks is 25%. Some stocks may be subject to higher maintenance requirements.

What is the charge to borrow funds on margin?

For a listing of our margin interest rates, please visit our Margin and Interest Rates page.