Securities with increased margin requirements and trading strategy limits
The following securities have additional requirements in place, and some trading strategies have been limited to only allow clients to trade with their own capital on hand, not borrowed funds. You can continue to place buy and sell stock orders, as well as some option strategies.
This list is as of May 10, 2021, 9:30 AM ET.
- All stocks are marginable (requirement = 100%).
- Short selling is not allowed at this time.
- There are no limitations on long calls and long puts for these stocks.
- Custom spreads are not allowed, but standard spread orders are. Spread orders allowed include: Verticals, Back/Ratio, Calendar, Diagonal, Straddle, Strangle, Covered Stock, Collar, Butterfly, Combo, Condor, Iron Condor, Vertical Roll, Collar with Stock, Double Diagonal and Double Calendar.
- Opening orders on short individual options are not allowed with the exception of cash-secured puts or covered calls, which must be placed through a broker.
- If you currently own stock in one of these securities and wish to sell a covered call, you must do so with a broker. Please be aware that wait times to speak with a broker may be longer than normal due to current market conditions.
- If you have no position and wish to simultaneously buy stock and sell calls against it, you may enter it as a covered stock (buy/write) order online.
- We may also implement additional requirements on opening trades on options that expire 5/14.
Please keep in mind that security requirements/strategy limitations can be added and may change at any time, without notice due to volatility or other market conditions.
Trading in Over The Counter (OTC) stocks
For clients interested in trading non-exchange-traded, Over The Counter (OTC) stocks, the industry is currently experiencing unusually high trading volume and third-party market makers currently may be delayed or in certain limited circumstances unable to complete trades in certain OTC stocks. Some market makers may reject unmarketable sell limit orders with a limit price far away from the stock price. For more information, please visit Company Statements | About Schwab.
Educate yourself on the risks
Trading in extremely volatile markets presents a number of inherit risks as securities may move quickly up and down. TD Ameritrade continues to be committed to helping investors better understand what can be behind these moves and how to navigate the market impacts.
Here are a few of the many educational resources we have available to you:
Trading Micro Caps and Investing in Penny Stocks: A Big Look at the Tiny - The Ticker Tape
Stay up to date on the current market conditions. Our latest expert perspectives are always available on The Ticker Tape at tdameritrade.com/marketupdate.
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