Margin

Canadian Stocks and Canadian Residents Trading All Stocks Margin


The following table shows stock margin requirements for initial (at the time of trade), maintenance (when holding positions), and Overnight Reg T (Regulatory End of Day Requirement) time periods. FINRA and the NYSE have imposed rules to limit small investor day trading. Customers that these organizations classify as Pattern Day Traders are subject to special Day Trading Restrictions for US Securities.


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Long Positions Traded on Approved Exchanges 1

Reg T Margin
Initial Margin If Stock Price >= CAD 2, then 50% * Stock Value
Maintenance Margin Same as Initial
Reg T End of Day Margin Same as Initial
Cash or IRA-Cash 100% * Stock Value


Long Positions Eligible for Reduced Margin on Approved Exchanges 1

Reg T Margin
Initial Margin If Stock Price >= CAD 2, then 30% 3 * Stock Value
Maintenance Margin Same as Initial
Reg T End of Day Margin If Stock Price >= CAD 2, then 50% 2 * Stock Value
Cash or IRA-Cash 100% * Stock Value


All Other Long Positions including Stocks < CAD 2 and TSX Venture Exchange

Reg T Margin
Initial Margin 100% * Stock Value
Maintenance Margin Same as Initial
Reg T End of Day Margin Same as Initial
Cash or IRA-Cash Same as Initial


Short Positions Traded on Approved Exchanges 1

Reg T Margin
Initial Margin If Stock Price >= CAD 2, then 50% * Stock Value

Minimum Margin >= USD 2.50 * Number of Shares
Maintenance Margin Same as Initial
Reg T End of Day Margin Same as Initial
Cash or IRA-Cash 100% * Stock Value


Short Positions Eligible for Reduced Margin on Approved Exchanges 1

Reg T Margin
Initial Margin If Stock Price >= CAD 2, then 30% 3 * Stock Value

Minimum Margin >= USD 2.50 * Number of Shares
Maintenance Margin Same as Initial
Reg T End of Day Margin If Stock Price >= CAD 2, then 50% 2 * Stock Value

Minimum Margin >= USD 2.50 * Number of Shares
Cash or IRA-Cash 100% * Stock Value


All Other Short Positions including Stocks < CAD 2 and TSX Venture Exchange

Reg T Margin
Initial Margin 100% * Stock Value

Minimum Margin >= USD 2.50 * Number of Shares
Maintenance Margin Same as Initial
Reg T End of Day Margin Same as Initial
Cash or IRA-Cash Same as Initial


Cross-Margined Stock on the Same Underlying 4

Reg T Margin
Initial Margin 5% * Long Stock Value

(Long and short positions with the same underlying stocks, one leg cleared in the US and the other leg cleared in Canada.)
Maintenance Margin Same as Initial
Reg T End of Day Margin Same as Initial
Cash or IRA-Cash N/A


Disclosures
  1. Approved exchanges for Canadian residents are: TSX, NYSE, NASDAQ, AMEX, ARCA, LSE, TSE.JPN. Only TSX applies to Non-Canadian residents. To see which securities the IDA has determined are eligible for reduced margin, view this List of Securities Eligible for Reduced Margin.
  2. For Leveraged ETFs, Minimum(50% * Leverage Factor, 100%)
  3. For Leveraged ETFs, Minimum(30% * Leverage Factor, 100%)
  4. Long CAD stock and short USD stock or long USD stock and short CAD stock.
  • All margin accounts must have a minimum of USD 2,000 to trade.
  • Margin requirements quoted in US or CA dollars may be satisfied with the equivalent amount in another currency.
  • IB has additional algorithms which increase the nominal margin for positions that represent a >1% holding of an individual company's shares outstanding, with full margin required for concentrations of >= 5% of a company's shares outstanding. Investors should be prepared to meet the increased margin, where holdings are above 1% threshold.