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Options Requirements

Options Requirements

 
 
 
$5,000 minimum equity is required to establish and maintain a margin account. All applicable originally signed agreements must be on file prior to making the first trade in the account. 
 
Margin and maintenance requirements are set by the Federal Reserve and Hilltop Securities.
 
These requirements are subject to change without notice.
 
 
 
 
 
EQUITIES
Share Price
Inital Requirement
Maintenance Requirement
 
 
 
 
Long Stock
$5 and below
$5 1/8 and above
100%
50%
100% of market value
35% of market value
 
 
 
 
Short Stock
$1/8   - $2.50
$2.50 - $5.00
$5.00 - $16 5/8
over     $16 5/8
50%
50%
50%
50%
$2.50 per share
100% of market share
$5.00 per share
30% of market value
 
 
 
 
BONDS
Bond-Type
Inital Requirement
Maintenance Requirement
Corporate (Convertible)
Corporate (Non-Convertible)
Municipal
50%
25%
25% of market value
35%
20%
15% of market value
10% of principal, which ever is greater
US Treasury Bills
US Treasury Bonds & Notes
1% of market value
10% of market value or 6% of principal, which-ever is greater
same as initial
same as initial
 
OPTIONS:
 
Covered Writing:
The sale of a call cannot be made in a cash account unless the underlying security is long in the account, prior to the sale.
Purchase to Open:
100% of total trade cost must be on deposit in cleared funds prior to placing an order.
Naked Options:
$20,000 minimum equity or premium plus 20% of underlying stock value minus out-of-the-money, whichever is greater.
Spread Positions:
Bull - $25,000 minimum equity plus premium debit
Bear - $25,000 minimum equity plus the difference between the strike price
Index - $50,000 minimum equity
 
 
 
 

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