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Do some stocks have higher margin requirements than others?

April 26, 2017margin requirements stocks

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Do some stocks have higher margin requirements than others?

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Yes they do and the margin requirement for stocks can change based on market conditions and the volatility of the stock. The New York Stock Exchange set the Minimum Maintenance Requirement on long margin positions at 25% of the current market value and 30% or 5 per share which ever is greater for short positions. Individual brokerages and clearing firms have the right to raise the MMR as they see fit based on market conditions. If you have any questions regarding the maintenance requirements of a particular stock or your overnight positions, please contact the Mastertrader.com trade desk. Also, NASDAQ/Listed Stocks trading below $5 will almost always have a margin requirement of 50% and NASDAQ/Listed Stocks trading at or below $3 will have 100% margin requirement. Please note that Pink Sheet and OTC Bulletin Board stocks have 100% margin requirement.