FAQ - Margin

What is a Margin Account?

A margin account permits investors to borrow funds from their brokerage firm to purchase marginable securities on credit and to borrow against marginable securities already in the account. Interest is charged on the borrowed funds for the period of time that the loan is outstanding.

Accounts with a minimum value of $2000 are eligible for margin with the exception of:

  • Uniform Gifts to Minors Account (UGMA)
  • Coverdell (Education Savings Account)
  • Minor IRA
  • Guardian/Conservator account
  • Estate account
  • Accounts managed by TD Ameritrade Investment Management

In addition, an IRA or qualified plan account approved for margin:

  • Will not be permitted to borrow funds
  • Will not be able to have a debit balance
  • May not short stock or sell uncovered options

Note: Some foreign accounts in specific countries are not able to add margin privileges.

How do I apply for margin?

To apply for margin trading, log in to your account at www.tdameritrade.com, go to Client Services > My Profile and select General. In the Elections & routing section, select Apply next to Margin trading. You will be asked to complete three steps:

  1. Read the Margin Risk Disclosure statement.
  2. Enter your personal information.
  3. Agree to the terms.

Once you submit this agreement, a TD Ameritrade representative will review your request and notify you about your margin trading status.

How does my margin account work?

Generally, a client pledges the securities in their account as collateral for a loan that they may then use to purchase additional securities. The Federal Reserve Board (FRB) sets margin requirements for various marginable securities. For instance, the current margin requirement for initial purchase of eligible securities is 50% of the purchase amount. This is commonly referred to as the Regulation T (Reg T) requirement. Under Reg T, you must have at least 50% of the value of the trade in your account in either cash or fully paid marginable securities by settlement date of the trade. Although, The Federal Reserve determines which stocks can be used as collateral for margin loans, TD Ameritrade is not obligated to extend margin on all approved stocks.

As an example, a client with $10,000 of cash in a margin account would be able to purchase up to $20,000 worth of marginable securities, this is known as a client’s Stock Buying Power. 

How is Buying Power Determined?

The calculation of stock buying power is the lesser of Special Memorandum Account (SMA) multiplied by two or maintenance excess divided by 30%, unless the security has special margin requirements.

What is SMA?

The Special Memorandum Account (SMA), is a line of credit that is created when the market value of securities held in a Regulation T margin account appreciate. The objective of this account is to maintain the buying power that unrealized gains create towards future purchases without creating unnecessary funding transactions. Without SMA, an account would have to withdraw excess equity and redeposit it at the time of the account’s next purchase. 

How does SMA change?

The SMA account increases as the value of the securities in the account appreciate, but does not decrease when the value of those securities depreciates. However, SMA can only appreciate when account’s equity percentage is 50% or greater. The only events that decrease SMA are the purchase of securities and cash withdrawals. Below is a list of events that will impact your SMA:

 

Positive Adjustments to SMA Effect
Cash Deposit 100% of Value
 Marginable Security Deposits  50% of Value
 Cash Dividend or Interest Credit  100% of Value
 Sale of Long Marginable Securities  50% of Value
 Sale of Long Non-Marginable Securities  100% of Value
 Buy-to-Cover Short Equity Position  50% of the Value
 Premium Collected from Selling an Option (Opening or Closing)  100% of the Value
 Appreciation of Marginable Securities when Reg-T excess is available  50% of the Value

 

Negative Adjustments to SMA Effect
Cash Withdrawal 100% of Value
Purchase of Marginable Securities 50% of Value
Purchase of Non-Marginable Securities 100% of Value
Buying Options (Premium Paid) 100% of Value
Transfer Out of Marginable Securities 50% of Value

 

*Margin Interest and appreciation/depreciation of non-marginable securities do not have any impact on SMA. 

What is Maintenance Excess?

Maintenance excess, also known as house surplus, is the amount by which your margin equity exceeds the total maintenance requirements for all positions held in your account. Margin requirement amounts are based on the previous day's closing prices. Maintenance excess applies only to accounts enabled for margin trading. If applicable, you can view this figure under "Margin equity" in the "Margin" section on the displayed page.

Example

Client opens account and deposits $10,000 into their TD Ameritrade margin account, the account ledger would look like the following.

Item Starting
Cash 1000
Long Stock Value 0
Equity 1000
Reg-T Requirements 0
SMA 1000
Maintenance Requirements 0
Maintenance Excess 1000
Available Funds for Trading (Option BP on thinkorswim) 1000
Stock BP 2000

Client Purchases $10,000 of ABC Corp.

Item  Change Resulting
Cash  -10000 0
Long Stock Value 10000 10000
Equity (Marginable Stock + Cash) 10000 10000
Reg-T Requirements 5000 5000
SMA -5000 5000
Maintenance Requirements 3000 3000
Maintenance Excess 7000 7000
Available Funds for Trading (Option BP on thinkorswim) -5000 5000
Stock BP -10000 10000

ABC position appreciates to $12,000  

Item  Change Resulting
Cash  0 0
Long Stock Value 2000 12000
Equity (Marginable Stock + Cash) 2000 12000
Reg-T Requirements 1000 6000
SMA 1000 6000
Maintenance Requirements 600 3600
Maintenance Excess 1400 8400
Available Funds for Trading (Option BP on thinkorswim) 1000 6000
Stock BP 2000 12000

 ABC depreciates to $5,000

Item  Change Resulting
Cash  0 0
Long Stock Value -7000 5000
Equity (Marginable Stock + Cash) -7000 5000
Reg-T Requirements -3500 2500
SMA 0 6000
Maintenance Requirements -2100 1500
Maintenance Excess -3900 3500*
Available Funds for Trading (Option BP on thinkorswim) 2500 3500
Stock BP -333 11667

*Because Maintenance excess is less than SMA it determines buying power in this example

ABC appreciates to $10,000

Item  Change Resulting
Cash  0 0
Long Stock Value 5000 10000
Equity (Marginable Stock + Cash) 5000 10000
Reg-T Requirements 2500 5000
SMA 0 6000
Maintenance Requirements 1500 3000
Maintenance Excess 2500 7000
Available Funds for Trading (Option BP on thinkorswim) 3500 6000
Stock BP 333 12000

 Client sells ABC position for $10,000

Item  Change Resulting
Cash  10000  10000
Long Stock Value  -10000  0
Equity (Marginable Stock + Cash)  10000  10000
Reg-T Requirements  -5000  0
SMA  5000  11000
Maintenance Requirements  -3000  0
Maintenance Excess  3000  10000
Available Funds for Trading (Option BP on thinkorswim)  4000  10000
Stock BP  10000  22000*

 *In this example, Maintenance Excess determines the funds available for trading. However, SMA multiplied by 2 is less than Maintenance excess divide by 30% so SMA is determining Stock Buying Power.

How much stock can I buy?

Generally, an account that is not breaching concentration requirements, can determine how much stock they can purchase by dividing their Funds Available for Trading (Option BP on thinkorswim) by the securities margin requirement.

Example

Client has the following buying power available:

Client wishes to purchase the maximum amount of ABC Corp. ABC Corp has a 30% margin requirement.

$16,300/30% = $54333.33

In this case the client could purchase $54,333.33 of ABC Corp.

The client decides not to purchase ABC, but would rather own XYZ which has a 40% margin requirement.

$16300/40% = $40,750

In this case, the same client, would only be able to purchase $40,750 of XYZ due to its 40% requirement.

Still have questions?

You can reach a Margin Specialist by calling 877-877-0272 ext 1 

What is a Margin Call?

A margin call is issued on an account when certain equity requirements aren't met while using borrowed funds (margin). When a margin call is issued, you will receive a notification via the Secure Message Center in the affected account. There are several types of margin calls and each one requires a specific action.

How is it reflected in my account?

When your account is in a margin call you will be notified via the *Secure Message Center. There will also be a yellow banner at the top of your TD Ameritrade homepage notifying you of the call and the deficiency amount.

Finally, your account’s Funds Available for Trading (Option BP on Thinkorswim) will be reflected as a negative number.

Website

thinkorswim

Types of Margin Calls

Refer to the following table:

How do I meet my margin call?

  • Deposit the original call amount
  • Liquidate securities so that your account would be positive based on the closing prices of the normal market session
  • Deposit fully paid-for marginable securities*
  • Or any combination of the aforementioned ways

I have multiple margin calls in my account, can I just liquidate enough to meet the first margin call?

No, TD Ameritrade will only consider this margin call met if you deposit the full amount of the original call. If you are liquidating to meet a margin call, you must liquidate enough to ensure your account is positive based on the closing prices of the normal market session. 

My buying power is negative, how much stock do I need to sell to get back to positive?

Generally, you can take your Funds Available for Trading and divide by the margin requirement of the security you plan to liquidate to determine the total notional value which must be liquidated to get back to positive. Liquidating positons can be complex, if you need additional assistance call a margin Specialist at 877-877-0272 ext 1.

Example 1:

The following account is deficient by $2,000 and is looking to get back to positive by selling a stock in the account which has a 40% margin requirement. 

-2000/40%= $5000

In this case, the client would need to liquidate $5000 worth of a stock with a 40% margin requirement in order to meet their $2000 deficiency.

Example 2:

The following account is in a Regulation-T call in the amount of $2,000 and is looking to get back to positive by selling a stock in the account.

-2000/50% = $4000

In this case, the client would need to liquidate $4000 worth of stock in order to meet the $2000 Reg-T call.

*The deposit of marginable securities does not give dollar-for-dollar relief. In order to determine how much relief marginable securities offer, please contact a margin representative at 877-877-0272, ext 1.

How are Maintenance Requirements on a Stock Determined?

In accordance with the rules of the exchanges, TD Ameritrade places “Initial and Maintenance” margin requirements on accounts. These requirements dictate the amount of equity needed in an account in order to hold and create new margin positions.

All broker/dealers, including TD Ameritrade, Inc., reserve the right at any time to adjust minimum maintenance requirements. This adjustment can be done on an individual account basis as well as on a stock-by-stock basis, depending on a stock's trading volatility and other factors. Your account may be subject to higher margin equity requirements based on how market fluctuations affect your portfolio.

Below are the maintenance requirements for most long and short positions. However, concentrated positions and certain stocks may have special requirements between 35% and 100%.

Non-marginable stocks cannot be used as collateral for a margin loan. Likewise, you may not use margin to purchase non-marginable stocks. 

What is a Special Margin requirement?

Some securities have special maintenance requirements that require you to have a higher percentage of equity in your account in order to hold them on margin. Typically, they are placed on positions held in the account that pose a greater risk. These higher-risk positions may include lower-priced securities, highly concentrated positions, highly volatile securities, leveraged positions and other factors. There are no restrictions from trading securities with special maintenance requirements as long as the requirement can be met.

For more information on Concentrated Positions (hyperlink to page) or contact a Margin Specialist at 877-877-0272 ext 1.

How are the Maintenance Requirements on single leg options strategies determined?

Long Options: The buyer of long options must pay 100% of the purchase price. Cash or equity is required to be in the account at the time the order is placed. Regulation T and maintenance requirements are also 100%.

Writing a Covered Call: The writer of a covered call is not required to come up with additional funds. The backing for the call is the stock. During the life of the covered call, the underlying security cannot be valued higher, for margin requirement and account equity purposes, than the strike price of the short call.

Writing a Cash Secured Put: The put-writer must maintain a cash balance equal to the total exercise value of the contracts. If the option is assigned, the writer of the put option purchases the security with the cash that has been held to cover the put.

Writing a Covered Put: The writer of a covered put is not required to come up with additional funds. The backing for the put is the short stock. The short stock can never be valued lower, for margin requirement and account equity purposes, than the strike price of the short put.

Uncovered Equity Options

Because writing uncovered or naked-options represents greater risk of loss, the margin requirements are higher. The minimum equity for writing uncovered options is $5000 and requires an initial deposit and maintenance of the greatest of the following three formulas:

  1. 20% of the underlying stock less the out of the money amount (if any), plus 100% of the current market value of the option
  2. Calls: 10% of current market value of the stock PLUS the premium valuePuts: 10% of Exercise Value of the underlying stock PLUS the premium value
  3. 50 per contract plus 100 % of the premium

Example 1

Example 2

Example 3

In Scenario 1, the margin requirement would be $9000 as it is the highest requirement of the 3 examples.

Example 1

Example 2

Example 3

In Scenario 2, the margin requirement would be $4350 as it is the highest requirement of the 3 examples. 

What are the Maintenance Requirements for Equity Spreads?

Equity spreads

Debit Spreads - The buyer of a debit spread must pay 100% of the purchase price of the spread. Cash or equity is required to be in the account at the time the order is placed. Regulation T and maintenance requirements are also 100%.

Debit Spread Scenario

Client buys 5 of the October 65/60 put spread in XYZ security for $1.75

Example 

In this scenario, the margin requirement would be the total cash spent purchasing the debit spread, $875.

Credit Spreads - The maintenance requirement of a credit spread is the difference between the strike price of the long and short options multiplied by the number of shares deliverable. Cash generated from the sale will be applied to this requirement and the difference will be due upon execution of the trade.

Credit Spread Scenario

Client sells 5 of the October 70/65 put spread in XYZ security for $3.25

Example

The margin requirement for this spread is $2500. The client will collect $1875 from the sale of the spread ((5.75-2.00) *500)) and will be responsible for having the difference between the margin requirement and premium collected, $625, when entering the trade.

Equity Straddles

Long Straddle - Margin Requirements for purchasing long straddles are the same as for buying any other long option contracts. The buyer of a long straddle must pay 100% of the purchase price. Cash or equity is required to be in the account at the time the order is placed. Regulation T and maintenance requirements are also 100%

Straddle Scenario

Client buys 5 October 65 Straddles in XYZ Security for $4.25

Example

In this scenario, the margin requirement would be the total cash spent purchasing the straddle, $2125.

Short Straddle

The margin requirement is the greater of the uncovered requirement for the calls or puts, plus the value of the premium received on the other, non-holding , side of the straddle, and a minimum account value of $5000.

Straddle Scenario

Client sells 5 October 65 Straddles in XYZ Security for $4.25

In this scenario, the total margin requirement for the short straddle is $8650. This is derived by taking the margin requirement for the naked calls (the greater requirement) and adding to it the current value of the puts. Cash generated from the sale will be applied to this requirement and the difference will be due upon execution of the trade.

What are the Maintenance Requirements for Index Options?

Long Index Options: The buyer of a long index option must pay 100% of the purchase price of the options contract. Regulation T and maintenance requirements are both 100%.

Index Spreads and Straddles: The margin requirements to create spreads and straddles are computed in the same manner as those for equity options.

Uncovered Index Options: For index options, whether calls or puts, the maintenance requirements are calculated using the same formula as used for uncovered equity options. The initial deposit and maintenance requirements must equal 20% of the current index value minus the out-of-the-money amount, if any, plus the premium amount received. This amount must meet or exceed a minimum amount equal to 10% of the current index value times the index multiplier, plus the option’s market value.

Scenario

Client sells 10 October 205 calls for $5.25

Example 1

Example 2

In this scenario, the maintenance requirement for the short call would be $21,055 because it is the greater requirement of the two formulas.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.

What are the margin requirements for Mutual Funds?

Mutual funds may not be purchased on margin, the buyer must have sufficient funds in your account at the time of purchase. Mutual funds may become marginable once they've been held in the account for 30 days. As a result, their mutual fund positions may be segregated into marginable and non-marginable holdings.

Maintenance requirements for a Mutual Fund once it becomes marginable:

Carefully consider the investment objectives, risks, charges and expenses before investing. A prospectus, obtained by calling 800-669-3900, contains this and other important information about an investment company. Read carefully before investing.

Are Rights marginable?

No, they are non-marginable securities.

Are Warrants marginable?

Generally, they are non-marginable at TD Ameritrade. Contact a member of the margin team, at 877-877-0272 ext 1, for specific information about your specific Warrant.

What are the margin requirements for Fixed Income Products?

Fixed Income

  • Moody's Rating: Baa3 or better
  • S&P Rating: BBB- or better
  • Fitch Rating: BBB- or better

Corporate Convertible Bonds

  • Initial requirement: 50% of the market value
  • Maintenance requirement: 30% of the market value

Corporate Bonds

  • Initial requirement: (Greater of) 30% of the market value or 7% of the face value
  • Maintenance requirement: (Greater of) 25% of the market value or 7% of the face value

Municipal Bonds

  • Initial requirement: (Greater of) 20% of the market value or 7% of the face value
  • Maintenance requirement: (Greater of) 20% of the market value or 7% of the face value

United States Treasury Securities

Maintenance requirements for Coupon and Zero-Coupon Bonds are as follows:

Less than 5 years to maturity

  • Coupon: 5% of market value
  • Zero-Coupon Bonds: 5% of market value

5 - 20 years to maturity

  • Coupon: 5% of market value
  • Zero-Coupon Bonds: Greater of 5% of market value or 3% of par

Greater than 20 years to maturity

  • Coupon: 10% of market value
  • Zero-Coupon Bonds: Greater of 10% of market value or 3% of par

Fixed-income investments are subject to various risks including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. For further details, please call 800-934-4445.

What is Margin Interest?

Margin interest is the rate charged on the amount of the margin debit balance after the settlement of your purchase or withdrawal transaction. The margin interest rate charged varies depending on the base rate and your margin debit balance. If your account is margin enabled, you can see your base lending rate on the displayed page by selecting "View margin rate" under "Margin." 

What is the margin interest charged?

TD Ameritrade utilizes a base rate to set margin interest rates. When setting the base rate, TD Ameritrade considers indicators including, but not limited to, commercially recognized interest rates, industry conditions relating to the extension of credit, the availability of liquidity in the marketplace, the competitive marketplace and general market conditions. The interest rate charged on a margin account is based on the base rate. Your particular rate will vary based on the base rate and the margin balance during the interest period. You can review the base rate and the balance schedule on the Rates & Fees page.

*Please note: The base rate may be changed without prior notice. A change to the base rate reflects changes in the rate indicators and other factors. Any changes will be posted on the Rates & Fees page when changes are affected within 30 days after the effective change. 

How is Margin Interest calculated?

Margin interest rates vary based on the amount of debit and the base rate. The formula is: Interest Rate x Margin Debit / 360 = Daily Interest Charge. Although interest is calculated daily, the total will post to your account at the end of the month.
Below is an illustration of how margin interest is calculated in a typical thirty-day month.

*The following is an illustration. Your actual margin interest rate may be different.

How do I avoid paying Margin Interest?

If you don't want to pay margin interest on your trades, you must completely pay for the trades prior to settlement. If you need to withdraw funds, make sure the cash is available for withdrawal without a margin loan to avoid interest. You may have to wait for recent trades or newly deposited funds to settle before you withdraw funds.

How do I view my current margin balance?

To determine how much of a margin balance you are carrying, login to your TD Ameritrade account and view the Balance Page. Margin Balance considering cash alternatives is under the margin tab and will inform you of your current margin balance.

How do I calculate how much I am borrowing?

Generally, margin balance can be calculated by using the following formula:*

Value of Long Marginable Securities – Equity = Margin Balance

*Assumes account is only long stock

Scenario

In the above example, the client’s account value is $5250, but the client owns $10,764.81 worth of securities. The difference between these numbers (-$5514.81) is the amount the client is borrowing on margin. 

Does the cash collected from a short sale offset my margin balance?

No, TD Ameritrade segregates cash from a short sale and does not apply it to the margin balance.

When is Margin Interest charged?

Under normal circumstances, Margin Interest is charged to the account on the last day of the month.

What is concentration?

There are special maintenance requirements in cases where 50% or more of a total portfolio is concentrated into a single margin position. When this occurs, TD Ameritrade checks to see whether:

  • A single position makes up more than 50% of a total portfolio, and;
  • That single position's market value is greater than or equal to the total equity in a margin account

Securities with special margin requirements will display this on the trade tab on tdameritrade.com when creating an order. This can be seen below:

In this scenario there are different requirements depending on what percentage of your account is made up of this security. When the stock is 50%-69% of your total stock position it requires 70% of the notional value as a maintenance requirement. When the security is 70%-100% of your account it requires you have 100% of the value of the security in available funds.

***Note: TD Ameritrade rounds to the nearest whole number, so an account that has 49.6% concentration in a security will be rounded up to 50% and held at the second tier.

Example 1:
Client has the following positions 

Current client account equity = $24,000

In this scenario, ABC stock is 72% of the total holdings of the client. ABC stock has special margin requirements of:

  • No concentration = 30%
  • 50% concentration = 30%
  • 70% concentration = 40%
  • 90% concentration = 40%

So, given this table of requirements and where ABC is in relation to the clients holdings (73%), and over his equity of $24,000, his requirement on the position will be 40%. This is an increase above the stocks normal requirement of 30%

Example 2:
Client has the following positions:

Current client account equity = $20,000
In this scenario AAA stock is 100% of the clients holdings. AAA stock has special requirements of:

  • No concentration = 50%
  • 50% concentration = 50%
  • 70% concentration = 70%
  • 90% concentration = 70%

So given this table of requirements and the stock being the clients entire holding his requirement on the position will be 70%. This is an increase above the normal requirements of 50% as it is over his equity and 100% concentrated.

Example 3:
Client has the following positions 

Current client account equity = $50,000
In this scenario BBB is 51% of the clients holdings which would constitute concentration of 40% under the following concentration tiers:

  • No concentration = 30%
  • 50% concentration = 40%
  • 70% concentration = 50%
  • 90% concentration = 50%

The reason this security will not be held at 40% is due to the clients equity being higher than the positions value:

Equity: $50,000 > position value: $25,000

***Note: Margin requirements (on all positions, whether concentrated or not), may change at any time with or without notice. TD Ameritrade reserves the right at any time to adjust the minimum maintenance requirement of concentrated positions. This adjustment can be done on an individual account basis, as well as on a stock-by-stock basis, depending on a stock's trading volatility and other factors. Your account may be subject to higher margin equity requirements based on how market fluctuations affect your portfolio. ***

What is a “Day Trade”?

FINRA rules define a Day Trade as the purchase and sale, or the sale and purchase, of the same security on the same day (regular and extended hours) in a margin account. This definition encompasses any security, including options. Just purchasing a security, without selling it later that same day, would not be considered a Day Trade. 

What is a “Pattern Day Trader”?

A pattern day trader's account must maintain a day trading minimum equity of $25,000 on any day on which day trading occurs. The $25,000 account-value minimum is a start-of-day value, calculated using the previous trading day's closing prices on positions held overnight. Day trade equity consists of marginable, non-marginable positions, and cash . Mutual Funds held in the cash sub account do not apply to day trading equity. Also, funds held in the Futures or Forex sub-accounts do not apply to day trading equity. To avoid an account restriction, pattern day-trader accounts that fall below the $25,000 minimum equity requirement should not day trade.

What if an account is Flagged as a Pattern Day Trader?

A pattern day trader's account must maintain a day trading minimum equity of $25,000 on any day on which day trading occurs. The $25,000 account-value minimum is a start-of-day value, calculated using the previous trading day's closing prices on positions held overnight. Day trade equity consists of marginable, non-marginable positions, and cash . Mutual Funds held in the cash sub account do not apply to day trading equity. Also, funds held in the Futures or Forex sub-accounts do not apply to day trading equity. To avoid an account restriction, pattern day-trader accounts that fall below the $25,000 minimum equity requirement should not day trade.

What if an account is Flagged and the account equity is above $25,000?

The account can continue to Day Trade freely.

What if an account is Flagged and the account equity is below $25,000?

An account that is both A) Flagged as a Pattern Day Trader and B) has less than $25,000 equity will be issued a Day Trade Minimum Equity Call (“EM Call”). The Call does not have to be met with funding, but while in the Call the account should not make any Day Trades. If a Day Trade is made while in the Call the account will be set to Restricted - Closing Only.

How can an account get out of a Day Trade Minimum Equity Call?

An account will no longer be in an EM Call when either the Flag is removed from the account (which happens after 90 days) or the account equity is brought above $25,000.

What if an account executes a Day Trade while in an EM Call?

The account will be set to Restricted – Close Only. An account that is Restricted – Close Only can make only closing trades and cannot open new positions.

How can an account get out of a Restricted – Close Only status?

The account will remain Restricted until either the Flag is removed (which happens after 90 days) or the account value is brought above $25,000.

Are there any exceptions to the 90-day designation?

Can the PDT Flag be removed earlier? Because investors are sometimes unaware of or misunderstand FINRAs Day Trading rules each TD Ameritrade account has available a one-time Flag removal. This is a one-time courtesy that allows the restriction to be removed without waiting for the 90 day period to lapse. 

Are Futures or Forex subject to the PDT rules?

Both Futures/Futures Options and Forex are regulated by the NFA, which has no rules on day trading. As such, Futures/Futures Options and Forex round trips don't count toward the PDT rules and funds covering margin on Futures/Futures Options and Forex positions don’t count toward the $25,000 FINRA equity requirement. 

Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges subject to TD Ameritrade review and approval. Carefully review the Margin Handbook and Margin Disclosure Document for more details. Please see our website or contact TD Ameritrade at 800-669-3900 for copies.