TD Ameritrade

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Portfolio Margin

Lower margin requirements. Greater buying power. Maximized potential.

Open new account

Lower margin requirements. Greater buying power. Maximized potential.

Open new account

Take advantage of portfolio margin and increase your buying power with up to 6.7 times more leverage than a standard margin account. Qualified investors that have a $125,000+ portfolio and meet our minimum requirements are able to use portfolio margin to invest more capital, potentially better weather market events, diversify their portfolio, and potentially yield greater returns. It's important to remember that with the opportunity for greater returns also comes the risk of greater losses.

Invest with TD Ameritrade and leverage so much more than buying power

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Access all of our trading tools on the industry-leading thinkorswim platform.

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Reach out for help whenever you need it, with 24/7 account support from trading specialists.

How to get started today

1. Open an account

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.

How portfolio margin works

The goal of portfolio margin is to set margin requirements that reflect net risk, which may allow our clients to benefit from lower margin requirements and more effective use of capital. Unlike traditional margin loans, which automatically require you to fund a set percentage of the investment, it aligns requirements with your portfolio’s overall risk based on the net exposure of all positions, not just on individual ones. That often means that a well-hedged portfolio can require a much lower buy-in; however, you must maintain $100,000 net liquidating value in your account to remain eligible. Here's how maintenance requirements are calculated:


1. We create a range of theoretical price changes across your margin account: between -15% and +15% for stocks and options positions and -12% and +10% for large and small cap broad based indices.+

2. The range is divided into ten equidistant points, and the gain/loss on the entire position is calculated at each of the ten points (scenarios).

3. For options, we use two methods to dynamically incorporate implied volatility (IV) into the risk array (sticky strike vs. sticky delta).

4. Finally, we calculate your greatest possible loss on each scenario, which becomes your margin requirement.

How added leverage can enhance your strategy

Diversified Stock Portfolio Protective Put Collar Short Iron Condor

Diversified Stock Portfolio

portfolio margin chart
  • Traditional Margin Initial Requirement
  • Traditional Margin Maintenance Requirement
  • Portfolio Margin Requirement
  • Long 100 shares of Stock XYZ @ $100

Protective Put

portfolio margin chart
  • Traditional Margin Initial Requirement
  • Traditional Margin Maintenance Requirement
  • Portfolio Margin Requirement
  • Long 10,000 ZAAZ @ 97.73
  • Long 100 ZAAZ June 95 Puts @ 1.02

Collar

portfolio margin chart
  • Traditional Margin Initial Requirement
  • Traditional Margin 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

portfolio margin chart
  • Traditional Margin Initial 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


Key considerations


Portfolio margin can be a great resource for people who want more investing flexibility. Before you get started, keep these details in mind.


  • Portfolio Margining is not suitable for all investors and is greater risk than cash accounts
  • If you want to minimize risk, consider diversifying your portfolio and aligning margin requirements on the net exposure of all your positions, not just one of them.
  • If your account falls under $100,000 Net Liquidating Value and you do not bring it above this watermark, you will be removed from the portfolio margining system.
  • The requirements for portfolio margin are: a minimum of $125,000 account equity (you cannot combine accounts to reach this), full options trading approval, and three years of experience trading options.
  • Portfolio margin is only available to margin (non-IRA) accounts.

See the process—and results—firsthand

Check the background of TD Ameritrade on FINRA's BrokerCheck