Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the Margin Requirement for a Concentrated Account?

April 26, 2017account Concentrated margin requirement

0

Posted

What is the Margin Requirement for a Concentrated Account?

1 Answer

0

Posted

Example: When one position comprises greater than 70% of the value of an account the margin requirement for that concentrated position rises from say 30% to 35% due to the risk of having “all your eggs in one basket.” If the one position comprises greater than 90% of the value of an account the margin requirement for that concentrated position rises further to say 40%.