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Opening a margin account at Lightspeed Trading allows a trader or investor to borrow funds to trade securities in the secondary equity, options, and futures market. Margin accounts can be used to buy, sell, and short sell securities. To be considered for a margin account, you must apply at account opening or complete the Margin Application and Agreement. Margin interest is charged based on the amount of money borrowed over your total equity.
The interest rate is charged per day, annualized. The margin interest rates are subject to change without notice and can be found on our company website. Each account at Lightspeed is self-directed and the margin loan is collateralized by the accounts equity. SEC-approved portfolio margining rules allow margin requirements to reflect the actual risk of the entire portfolio in a specific brokerage account more accurately.
This means that qualified customers may increase their leverage beyond the 4 to 1 intraday or 2 to 1 overnight margin available in a standard margin account. If PM status is removed, account would have to wait for 90 days before restoring PM status and meeting the PM minimum equity. If your low margin options trading accounts is Non- PDT your account is limited to 3 intraday trades in a 5-trading day rolling period.
This is a rolling 5-day period and is NOT a week by week calculation. For example, if you log in to trade on Wed, the number of day trades will be calculated based on activity of the previous, Tues, Monday, Friday, and Thursday with the present day as the 5th day.
The number of day trades is based on opening transactions. For example, If you bought shares, then bought another shares one hour later and then one hour after that sold shares, that is two day trades. If you bought shares and then sold shares one hour later and an hour after that sold another shares, that is one-day trade.
The minimum amount of equity that the low margin options trading accounts requires to support the various types of positions held in the account. This applies to long and short positions. The total equity in the low margin options trading accounts minus the maintenance requirement to hold any overnight positions.
The max market value of a position you are permitted to hold overnight calculated as 2 times the maintenance excess or SMA, the lesser of the 2. Day Trade Buying Power: Day trade buying power is based on the maintenance requirement of the security being traded and varies by product type and price per share.
The total equity in the account minus the PM requirement to hold any overnight positions. The day in which a trade low margin options trading accounts placed. The date by which an executed low margin options trading accounts trade must be settled. That is, the date by which a buyer must pay for the securities delivered by the seller.
The fair value of each position in an account. Your cost basis never changes, mark to market accounting allows a genuine representation of each position by calculating its true appreciation or depreciation day by day. Refers only to losses on positions held coming into the day in which there is no trade activity. If there is trading in any symbol, losses will low margin options trading accounts be considered due to adverse markets movements. Reg-T Fed Initial Call: Incurred by insufficient overnight buying power ONBP to satisfy initial requirement on opening transactions held overnight.
Under Federal Reserve Board Regulation-T, you can borrow up to 50 percent of the total purchase price of a stock for low margin options trading accounts opening transactions. Liquidation can be used to meet the call but can only be used twice during a rolling year to meet an Initial Reg- T call.
On the 3rd instance your account will be in restriction, and limited to cash on hand for a period of 90 days. Incurred by having account equity below minimum maintenance requirements for open positions. Calculations mentioned above for meeting calls are based on zero account depreciation and will have to be increased if account subsequently loses value. However, the broker can use its discretion to liquidate securities any time after the issuance of the margin call to protect its financial interest, without notice to the customer.
If the call is not met, positions will be liquidated to satisfy the maintenance call. Money deposited to pay for this call must remain in the account for two days before being withdrawn.
This type of call cannot be met by liquidation. Thirty days after the last day trade you can request your account be coded as a Non-Pattern Day Trading account as a one-time exception. As a NPDT, your account is limited to 3-day trades based on opening transactions in a 5-business day rolling period. Incurred by exceeding accounts cash available on an opening transaction. Account will be limited to closing transactions if another violation occurs within 90 day restriction period.
Portfolio Margin Maintenance Call: Incurred by having account equity below house maintenance requirement for open positions. Portfolio Margin Low margin options trading accounts Equity Call: Portfolio Margin Leverage Call: Incurred by total market value of positions exceeding approved low margin options trading accounts. Liquidation can only be used twice per day period to meet this call.
On the third instance of using liquidation to meet this call, the account will lose PM status. Portfolio Margin Maintenance Regulatory Call: Incurred by Account low margin options trading accounts being below regulatory maintenance requirement for open positions. Deposits or liquidation amounts to meet calls must be increased if the account subsequently loses value.
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