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Margin Requirements & Rates


All margin accounts are subject to a $2,000 minimum equity requirement. TradeKing requires $25,000 in account equity for naked put writing and $100,000 for naked call writing. Please click here for important information regarding daytrading rules.

Please see the terms of TradeKing's Margin and Options agreements.

Stocks Requiring Higher Margin

Margin Rates


Commissions and fees from published web sites as of 02/10/2014. Some brokers may offer more competitive fees than the ones published if certain balances or level of activity are met. Please contact each broker individually to confirm their commission schedule. GTC orders: Partial executions received on different trading days will be charged separate commissions.1

OEX and XAU Options American Style Cash settled options

Due to recent market volatility option trades and positions involving short OEX and XAU options must be held in a level 6 approved option account with minimum account equity of $100K.

Long Stock: Equities between $3.00 and $6.00

Initial and Maintenance:
50% of Purchase Price

Long Stock: Equities above $6.00

Initial:
50% of the purchase

Maintenance:
30% of current market value (50% for concentrated accounts, when one security constitutes 50% or more of the account market value, 40% when one position constitutes 35%-50% of the account market value and 35% when a position constitutes 25%-35% of the account value).

Short Stock: Equities below $5.00

Initial and Maintenance:
The greater of: $2.50 per share

OR

100% of the market value + sale proceeds

TradeKing does not allow new short positions on stocks below $3

Short Stock: Equities above $5.00

Initial:
The greater of: $5.00 per share or 50% of the market value + sale proceeds

Maintenance:
The greater of: $5.00 per share + 100% of current market value

OR

40% of the position market value (50% for concentrated accounts, when one security constitutes 50% or more of the account market value) + 100% of current market value

Options: Short Uncovered (Naked) CALLS

IN and OUT of the Money CALLS Initial+Maintenance:
The greater of: 30% of the underlying MARKET price plus the premium minus any out-of-the-money amount

OR

15% of the underlying MARKET price plus the premium

TradeKing maintains a minimum margin requirement of $100 per uncovered short options contract.

Options: Short Uncovered (Naked) PUTS

IN-the-Money PUTS Initial+Maintenance:
The greater of: 30% of the underlying MARKET price plus the premium

OR

15% of the underlying STRIKE price plus the premium

OUT-of-the-Money PUTS Initial+Maintenance:
The greater of: 30% of the underlying MARKET price plus the premium minus the out-of-the-money amount

OR

15% of the underlying STRIKE price plus the premium

TradeKing maintains a minimum margin requirement of $100 per uncovered short options contract.

Options: Covered Calls

Initial:
Initial margin requirement on long stock (50% of long stock position). Long underlying position must be valued at lower of current market value or call exercise price for margin equity purposes.

Maintenance Margin:
Maintenance margin requirement on long stock (30% of long stock position. 65% if concentrated).

Options: Covered Puts

Initial:
Initial margin requirement on short stock (50% of short stock market value plus sale proceeds). In effect, the cash credit generated by the sale of the option will be applied to the margin requirement on the covered position. This cash credit is not available for financing other positions.

Maintenance:
Maintenance margin requirement on short stock (market value + 40%).

Options: Credit Spreads/Short Verticals

Initial + Maintenance:
Difference between the strike prices multiplied by the number of contracts (x 100).

Options: Short Straddles/Strangles

Initial + Maintenance:
The initial margin requirement for the short put or short call, whichever is greater, plus the premium of the other option.

Options: Short Call or Put Calendar Spreads

Initial + Maintenance:
Same requirements of the short call or put.

Options: Short Butterflies/Condors

Initial + Maintenance:
Same requirements of the short vertical spread of the butterfly or condor.

Options: Call or Put Back Spreads

Initial + Maintenance:
Same requirements of the short vertical component of the backspread.

Options: Call or Put Ratio Spreads

Initial + Maintenance:
Same requirements of the quantity of short options in excess of the quantity of long options.

Options: Short Box Spreads

Initial + Maintenance:
Initial margin requirement is the difference between the long and short strike prices.

Options: Short Iron Butterflies/Condors

Initial + Maintenance:
Initial margin requirement is on one of the short verticals of the iron wingspread.

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