Hello Valued Traders,
Beginning September 25th, our clearing firm, Penson Financial Services, will be implementing a change in the concentrated margin requirements for non-diversified accounts. An account will be considered concentrated if one or more of your positions comprises at least 25% of the total market value of all marginable securities in your account.
Under the current policy, an account is considered concentrated if a single marginable position exceeds the margin equity in the account. If the account is considered concentrated, all marginable positions in the account were to be held at a 40% maintenance requirement.
Under the new system, there will be a calculation for each marginable position’s percentage of net absolute value. This is derived by dividing the value of each position by the total value of all positions in your account.
• A position that makes up 25% to 35% of your total market value will have a 30% maintenance requirement.
• A position with a value between 35% and 50% of the total market value will be held at 40%.
• A position with a value greater than 50% of your total market value will be held at 50%.
| For example: |
1000 T |
$25 |
Total mkt. value |
$25,000 |
25,000/65,000 =38.4% |
Req.= 40% |
| |
1000 D |
$33 |
Total mkt. value |
$33,000 |
33,000/65,000 =50.76% |
Req. = 50% |
| |
1000 F |
$7 |
Total mkt. value |
$7,000 |
7,000/65,000 = 10.76% |
Req. = 25% |
| Total value of positions = $65,000 |
**ONLY the position with the concentrated requirement is held at that maintenance level.
Volume and market considerations may also cause an account to be considered concentrated. Keep in mind that the securities in your account may have different percentage maintenance requirements and therefore will release different amounts of equity when liquidated. To learn more about margin, please visit the Educational Margin Section on our website or contact our trade desk with any questions.
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for you in light of your circumstances and financial resources.
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