Margin requirements The margin requirement is the minimum amount of maintenance excess you must have in xau forex review signal account in order to enter a position. It is commonly expressed as a percent of the current market value. Certain securities may have a margin requirement higher than listed below based on an assessment of the stock by Questrade. Over the counter stocks are generally not eligible for margin.
Most major US stocks with listed options are eligible for reduced margin as well. Questrade reserves the right to margin certain securities it deems risky at higher rates than listed above. Questrade has four approval levels for option trading that require different minimum balances in your account before placing your trade. The option strategies for each option level can be found below. How to change your option level: log in to Questrade, under the ACCOUNTS tab select ACCOUNT MANAGEMENT. Choose the Account number and select Change beside Option level.
To place a Canadian multi-leg option order that includes a stock leg, or more than two option legs, please contact the trade desk at 1. The trade desk is available Monday to Friday, 8:30 a. The normal margin required on the underlying security. The out-of-the-money amount of the call option, plus the market value of the call option, minus any in-the-money amount of the call option. The out-of-the-money amount of the put option, plus the market value of the put option, minus any in-the-money amount of the put option. The margin required on the underlying security. The margin required on the aggregate exercise value.
The normal margin requirement for the underlying short security. Long calendar and diagonal strategies with European options have different margin requirements. Please see level 4 for details. The spread loss amount, if any, that would result if both options were exercised. The cost of the long options, minus the proceeds of the short options.
For equity options, or equity participation unit options, the margin rate used for the underlying security. Any out-of-the-money amount associated with the option. Questrade will give you the opportunity to satisfy the deficiency on a best effort basis. However, Questrade may liquidate or close your positions if you fail to comply with the terms of the margin call, including, in some cases, without notifying you first.
The terms of a margin call are determined at the discretion of Questrade. If you do not fully understand the terms of your margin call, promptly contact Questrade client services. Deposit more money into your account. Liquidate or close positions in your account. Cancel pending orders to open a position.
If you have a TFSA account at Questrade, use Margin Power to link the assets in your TFSA to your margin account. Currency exchange In margin accounts, Questrade will not automatically exchange currencies. Typically, you must initiate all conversion proceedings. USD, you are borrowing the money from Questrade.
You are charged interest on the amount you borrow. To convert funds, log in to Questrade and make an exchange funds request. Securities concentration If the market value of a position in your margin account exceeds your equity, you have a concentrated position. In some cases, if you are too concentrated on a position, Questrade will increase the minimum margin requirement or request that you reduce the position. Associated Risks There are significant risks when trading on margin.
Prior to trading on margin please review the obligation to maintain margin under section 1. 14 and margin risk disclosure under section 1. 15 of Questrade’s account agreements and disclosure document. It is the amount required to open and maintain a position.