Margin Requirements

What this video covers

• The two-layer margin framework: Federal Reserve Board Regulation T (Reg T) sets 50% initial margin at purchase, then FINRA maintenance requirements take over every day after settlement
• Why long equity maintenance margin is 25% of current market value and short equity maintenance margin is 30%, and why short positions demand a higher floor
• The difference between FINRA floors and firm house requirements, and why a concentrated position can trigger a higher internal maintenance percentage
• The repeal of the Pattern Day Trader (PDT) rule effective June 4, 2026, and why the $25,000 minimum equity is no longer a correct answer choice
• How the intraday margin deficit framework works: calculation, the de minimis carve-out of lesser of 5% of equity or $1,000, and the 15-business-day maximum curing period
• When a 90-calendar-day restriction on new short positions or debit balances must be imposed for failure to cure by the close of the fifth business day
• Portfolio margin eligibility: the $100,000 equity minimum, why it is never the default, and why principal approval based on suitability is required