It can be further broken down into Initial Margin Requirement and Maintenance Margin Requirement. An Initial Margin Requirement refers to the percentage of equity required when an investor opens a position. 10,000 worth of stock ABC using your margin buying power. This is what is margin requirement in forex the Maintenance Margin Requirement.
When the investor is unable to maintain the equity above the maintenance margin requirement, a margin call occurs. Certain securities have higher margin requirements, in which case the initial and maintenance requirements will be the same higher rate. Please refer to the Special Margin Requirement chart to learn the details. Stay the same as the Initial Requirement. Want to speak with someone regarding basic questions in real-time? Try our interactive live chat service.
One of our representatives can provide assistance with your inquiries. Brokerage Products and Services offered by Firstrade Securities, Inc. Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors. An investor should understand these and additional risks before trading. Carefully consider the investment objectives, risks, charges and expenses before investing. All investments involve risk and losses may exceed the principal invested. Options trading involves risk and is not suitable for all investors.
Options trading privileges are subject to Firstrade review and approval. Please review the Characteristics and Risks of Standardized Options brochure before you begin trading options. Before investing in an ETF, be sure to carefully consider the fund’s objectives, risks, charges, and expenses. Please read the prospectus carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or ETF carefully before investing. Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market.