The Market Ticker - A Serious Leverage Warning
FINRA is apparently going to remove the $25,000 requirement to be a “pattern day trader” and permit firms to use maintenance margin requirements instead.
There are two margin figures generally in the markets: Initial margin (how much you must put up to enter the trade) and maintenance margin (how much you must have to keep it open.)
The maintenance margin number is typically smaller — usually a lot smaller.
For example when it comes to stocks the typical initial margin is 50%. That is, you must have $500 in cash to buy $1,000 in stock. The brokerage…….
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Source: https://market-ticker.org/akcs-www?post=254093
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