TD Ameritrade

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Trade commission–free for 60 days

+ get up to $600*

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Portfolio Margin

Lower portfolio margin requirements. Greater leverage in your account.

Get more trading leverage, diversify your account, hedge risk, and potentially seize market opportunities with portfolio margin. Designed to offer lower margin requirements and increased account leverage, portfolio margin may potentially lead to greater returns. Of course, greater loss is also possible. But the goal is to align margin requirements with your portfolio's overall risk, based on the net exposure of all positions, and not just on individual positions. Portfolio margin is available to qualified investors who meet our minimum requirements and have $125k or more in total equity.

As a client, you'll gain access to all of our trading tools, including the advanced thinkorswim platform. If you are leveraging portfolio margin to diversify, hedge risk, and potentially lower margin requirements in your qualified account, only the thinkorswim platform displays portfolio margin* requirements using a theoretical pricing model. Plus, you'll receive 24/7 account support and free access to trading specialists with floor trading experience to help you execute your strategies.

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Put Portfolio Margin to work for you.

How Portfolio Margin Works

Diversified Stock Portfolio Protective Put Collar Short Iron Condor

Diversified Stock Portfolio

  • Standard Margin Requirement
  • Maintenance Requirement
  • Portfolio Margin Requirement
  • Long 100 shares of Stock XYZ @ $652.35

Protective Put

  • Standard Margin Requirement
  • Maintenance Requirement
  • Portfolio Margin Requirement
  • Long 10,000 ZAAZ @ 97.73
  • Long 100 ZAAZ June 95 Puts @ 1.02

Collar

  • Standard Margin Requirement
  • Maintenance Requirement
  • Portfolio Margin Requirement
  • Long 10,000 shares of  XYZ @ 97.73
  • Long 100 XYZ April 95 Puts @ 1.02
  • Short 100 XYZ April 105 Calls @ .40

Short Iron Condor

  • Standard Margin Requirement
  • Portfolio Margin Requirement
  • Long 100 FAHN August 85 Puts @ .07
  • Short 100 FAHN August 90 Puts @ .33
  • Short 100 FAHN August 100 Calls @ 1.68
  • Long 100 FAHN August 105 Calls @ .40

There is a method available for certain accounts for computing required margin for stock and option positions that is based on the risk of the position rather than the fixed percentages of Regulation T and strategy based margin. This method uses theoretical pricing models to calculate the loss of a position at different price points above and below current stock or index price. The largest loss identified is the margin required of the position. The result is often lower margin requirements than would be calculated from the old method.

Stock and option positions are tested with a minimum +/- 15% price changes. Small cap broad-based indices are tested with a minimum +/- 10% price changes. Large cap broad-based indices are tested with a minimum +6%/-10% price changes. The range is divided into ten equidistant points, and the loss/gain on the position as a whole is calculated at each of the ten points (scenarios). Stress testing is done on a position’s implied volatility and the margin requirement will be the largest loss calculated on any given scenario. Thus, hedged positions may have lower requirements than non-hedged positions. However, positions that are concentrated will be evaluated using a greater range and thus the requirement on these positions will be greater in comparison to a non-concentrated position.

In the event your account falls below $100,000 Net Liquidating Value; you will have to bring your account above this watermark or you will be removed from the portfolio margining system.

Portfolio Margin Minimum Requirements

  • Each account must have an initial net liquidating value of at least $125,000
  • Smaller accounts cannot be combined to meet the $125,000 requirement
  • Available only to margin (non-IRA) accounts

Get Started with Portfolio Margin

1. Open an account and trade commission-free for 60 days + get up to $600.

2. Call to request an upgrade at 877-877-0272. Select option 2 and request a Portfolio Margin upgrade, get more information, or ask questions. Questions and concerns can also be sent to support@thinkorswim.com.

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