Short Margin Requirements for Low Priced Stock
August 2, 2024
IMPORTANT UPDATE: Short Margin Requirements For Low Priced Stock
TradeZero America (“TZA”) strives to make equity and options trading transparent.That is why we go the extra mile to inform our clients of any change in market structure.
Apex Clearing has informed TZA that starting on the close of business on Friday, August 2, 2024, current overnight margin requirements for short positions priced below $5.00 will be increasing.
Currently the margin requirement for short positions that are low priced are as follows:
Stocks priced between $2.51 and $4.99 ➡️ 100% x Market Value margin requirement
Stocks priced below $2.50 ➡️ $2.50 per share margin requirement
New margin requirement for short positions that are low priced are as follows:
Stocks priced below $5.00 ➡️ $5.00 per share margin requirement
For example:
Short 1,000 NXL @ $1.50 ➡️ Margin requirement = 1,000 x $5 = $5,000
Short 5,000 SILO @ $2.16 ➡️ Margin requirement = 5,000 x $5 = $25,000
Please also be aware that margin requirements may change daily and overnight due to various factors including, but not limited to, volatility, low float, and percentage of insider holdings.