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)

50% maintenance requirement for the first 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.