Marginal
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General Margin Requirements
Here is a list of the different types of
securities you can trade on margin, along with other essential margin
information. Please note that these numbers can change without prior notification.
Equity Securities
| Security Value |
Loan Value |
| Equities $2.49 and
less |
no loan value |
| Equities $2.50 and
over |
50% of market value |
| Option eligible* securities
over $5.00 |
70% of market value |
| Mutual Funds |
50% of market value |
| *issues
which have met the criteria for the issuing of exchange traded
options |
Fixed
Income Securities
| Issued/Guaranteed by: |
Term to Maturity |
Loan Value |
| Governments of Canada, UK, USA |
10 years and less |
95% |
| |
Over 10 years |
95% |
| Parastatal |
3 years and less |
95% |
| |
Over 3 years |
90% |
| Municipalities |
1 year and less |
95% |
| |
Over 1 year |
90% |
| Commercial Paper*, Banker's Acceptances*,
Corporate Bonds* |
3 years and less |
90% |
| |
Over 3 years |
85% |
| |
Convertible |
70%* |
| |
Selling at 50% of par or lower |
no loan value |
| Negotiable GICs |
n/a |
50% |
| All Fixed Income Products in Default |
n/a |
no loan value |
| Income Bonds - paying interest as
stated |
10 years and less |
85% |
| |
over years |
50% |
| *no rating on Bonds
below B rating or if trading at below 50% par |
Eligible
Markets
Securities trading in the following markets will be eligible for margin:
| Eligible |
Ineligible |
| New York, Toronto, Amex, Montreal,
some NASDAQ* issues |
Vancouver, Alberta, Canadian OTC |
| *issues which appear
on the Federal Reserve Board's approved list |
Recommended further reading:
Buying
Power and Excess Margin
The advantages and disadvantages
of a Margin Account
Debit Balance and Margin
Interest Rates
Margin Account Approval
Margin account - diversified
portfolio
|
