Maintenance Margin
The equity that FINRA generally requires a broker-dealer to maintain in a margin account for all long margin securities is 25% of their current market value. For the long list of exceptions, see the following sections.
For short margin securities, the maintenance margin that must generally be maintained is the greater of the values in the table that follows. We will note the exceptions momentarily.
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Minimum Maintenance Margin for Short Margin Securities |
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Type of Security |
Maintenance Margin Is the Greater of: |
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Stocks |
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$2.50/share |
Market value of stock |
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$5.00/share |
30% market value of stock |
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Bonds |
5% of the principal |
30% market value of |