Virtual Account Buying Power Calculations
Virtual Account Buying Power Calculation
This is an example of how Buying Power is calculated. Check with your broker for specifics on your real accounts.
Margin
All margin accounts are subject to a $2,000 minimum equity requirement. ChoiceTrade requires $25,000 in account equity for naked put writing and $100,000 for naked call writing. Please click here to read our Risk Disclosure for important information regarding daytrading rules. Please see the terms of ChoiceTrade's Margin and Options agreements.POSITION | INITIAL MARGIN | MAINTENANCE MARGIN |
Long Stock | 1. 50% of the purchase price of marginable securities 2. 100% of the purchase price of non-marginable securities $2000 minimum margin account equity for all margin transactions $500 minimum cash balance required for Bulletin Board and OTC Market Stocks |
1. 25% of the current market value of the long securities positions in marginable securities. 2. 100% of the current market value of the long securities positions in non-marginable securities; See Special Notes below |
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Short Stock | The greater of: 1. 50% of the sale price of marginable securities; or 2. $5.00 per share $2000 minimum margin account equity for all margin transactions |
1. For marginable securities priced $2.50/share and under: $2.50/share 2. For marginable securities priced $2.51 to $5.00 per share: 100%. 3. For marginable securities priced $5.01 and above: greater of 50% or $5.00 per share. See Special Notes below |
Long Calls or Puts | 100% of the cost of the options. | 100% of the current market value of options. |
Short Uncovered Calls | The greater of: 1. 100% of the option proceeds plus 20% of the underlying stock less any amount the option is out-of-the-money; or 2. 100% of the option proceeds plus 10% of the underlying stock $100,000 minimum margin account equity |
The greater of: 1. The current marked-to-market value of the option plus 20% of the underlying stock less any amount the option is out-of-the-money; or 2. The current marked-to-market value of the option plus 10% of the underlying stock |
Short Puts | The greater of: 1. 100% of the option proceeds plus 20% of the underlying stock less any amount the option is out-of-the-money; or 2. 100% of the option proceeds plus 10% of the strike price. $100,000 minimum margin account equity |
The greater of: 1. The current marked-to-market value of the option plus 20% of the underlying stock less any amount the option is out-of-the-money; or 2. The current marked-to-market value of the option plus 10% of the strike price |
Short Covered Calls | None required on short call. | None required on short call. |
Debit Spread | 100% of the net debit | 100% of the current market value of the position. |
Credit Spread Market Orders |
Value of the difference between the strike prices $2,000 minimum margin account equity |
The lesser of: 1. Value of the difference between the strike prices of the vertical or; 2. The maintenance margin requirement of the short call or put |
Credit Spread Limit Orders |
Value of the difference between the strike prices less the credit to be received $2,000 minimum margin account equity |
The lesser of: 1. Value of the difference between the strike prices of the vertical or; 2. The maintenance margin requirement of the short call or put |
Long Butterflies/ Condors | 100% of cost of butterfly or condor. | 100% of current market value of butterfly or condor. |
Short Butterflies/ Condors | Initial margin requirement of the short vertical of the butterfly or condor. | Maintenance margin requirement of the short vertical of the butterfly or condor. |
Long Straddles/ Strangles | 100% of the cost of the straddle or strangle. | 100% of the current market value of the straddle or strangle. |
Short Straddles/ Strangles | The initial margin requirement for the short put or short call, whichever is greater, plus the premium of the other option; $100,000 minimum margin account equity |
The maintenance margin requirement for the short put or short call, whichever is greater, plus the premium of the other option; |
Long Call or Put Calendar Spreads |
100% of the cost of the calendar spread. | 100% of the current market value of the calendar spread. |
Short Call or Put Calendar Spreads |
Initial margin requirement of short call or put; $2,000 minimum margin account equity |
Maintenance margin requirement of short call or put; |
Special Notes Volatile Stock Requirement: Some stocks deemed to be volatile may be held at a higher requirement. New Issues: Generally, newly issued stocks have a 100% initial and maintenance requirement for the first 30 days of trading Leveraged ETFs: Minimim cash requirement for long positions: 2X ETF (200% Leveraged) = 50% 3X ETF (300% Leveraged) = 100% Minimim cash requirement for short positions: 2X ETF (200% Leveraged) = 60% 3X ETF (300% Leveraged) = 100% |