What is portfolio margin?
Portfolio margin allows margin requirements to be based on the net risks of the eligible instruments in a person’s account. In contrast with current strategy based margin requirements, portfolio margining sets a margin requirement equal to the greatest loss that, theoretically, would result if a gain or loss is computed on the portfolio as a whole at set increments to the upside and downside. For some specific examples of these differences please view the margin requirement examples.
Related Questions
- If a Portfolio Margin customer only trades long/short equities in its account, with no listed option positions, is the account subject to a margin requirement of 15 percent?
- Are REITs and when-issued securities eligible for a portfolio margin account?
- Can portfolio margin be applied to omnibus accounts?
