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Margin Requirements

The Margin Requirements panel on the Home screen shows you the current margin requirements for your account, including:

• Initial Margin: The minimum amount of equity required to open a new position.
• Maintenance Margin: The amount of equity required to maintain your current positions.
• Available Funds: The amount of funds you have available for trading.
  For securities, this is equal to Equity with Loan Value – Initial Margin.
  For commodities, this is equal to Net Liquidation Value – Initial Margin.
• Excess Liquidity: This is your margin cushion.
  For securities, this is equal to Equity with Loan Value – Maintenance Margin.
  For commodities, this Net Liquidation Value – Maintenance Margin.
• Buying Power: The maximum amount of equity available to buy securities. In a Margin account, Buying Power gives you additional leverage to make trades, increasing your potential gain but also increasing your risk.
  In a Cash account, Buying Power = Minimum (Equity with Loan Value, Previous Day Equity with Loan Value) – Initial Margin.
  In a Margin Account, Buying Power = Minimum (Equity with Loan Value, Previous Day Equity with Loan Value) – Initial Margin *4.
• SMA: SMA (Special Memorandum Account) is a line of credit created when the market value of securities in a Margin account increases in value and maintained for the purpose of applying Federal Regulation T initial margin requirements at the end of the trading day. If the SMA balance at the end of the trading day is negative, your account is subject to liquidation.