Take advantage of portfolio margin and increase your buying power with up to 6.7 times more leverage than a standard margin account. Qualified investors that have a $125,000+ portfolio and meet our minimum requirements are able to use portfolio margin to invest more capital, potentially better weather market events, diversify their portfolio, and potentially yield greater returns. It’s important to remember that with the opportunity for greater returns also comes the risk of greater losses.
1. Open an account
2. Call to request an upgrade at 877-877-0272. Select option 2 and request a portfolio margin upgrade, get more information, or ask questions. Questions and concerns can also be sent to [email protected].
The goal of portfolio margin is to set margin requirements that reflect net risk, which may allow our clients to benefit from lower margin requirements and more effective use of capital. Unlike traditional margin loans, which automatically require you to fund a set percentage of the investment, it aligns requirements with your portfolio’s overall risk based on the net exposure of all positions, not just on individual ones. That often means that a well-hedged portfolio can require a much lower buy-in; however, you must maintain $100,000 net liquidating value in your account to remain eligible. Here’s how maintenance requirements are calculated:
1. We create a range of theoretical price changes across your margin account: between -15% and +15% for stocks and options positions and -12% and +10% for large and small cap broad based indices.+
2. The range is divided into ten equidistant points, and the gain/loss on the entire position is calculated at each of the ten points (scenarios).
3. For options, we use two methods to dynamically incorporate implied volatility (IV) into the risk array (sticky strike vs. sticky delta).
4. Finally, we calculate your greatest possible loss on each scenario, which becomes your margin requirement.
+Wider stress parameters that result in a larger margin requirement may be enforced at any time.
Traditional Margin Initial Requirement
Traditional Margin Maintenance Requirement
Portfolio Margin Requirement
Traditional Margin Initial Requirement
Traditional Margin Maintenance Requirement
Portfolio Margin Requirement
Traditional Margin Initial Requirement
Traditional Margin Maintenance Requirement
Portfolio Margin Requirement
Traditional Margin Initial Requirement
Portfolio Margin Requirement
Portfolio margin can be a great resource for people who want more investing flexibility. Before you get started, keep these details in mind.
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.
Market volatility, volume and system availability may delay account access and trade executions.
Before rolling over a 401(k) to an IRA, be sure to consider your other choices, including keeping it in the former employer’s plan, rolling it into a 401(k) at a new employer, or cashing out the account value. Keeping in mind that taking a lump sum distribution can have adverse tax consequences. Be sure to consult with your tax advisor.
All investments involve risks, including the loss of principal invested. Past performance of a security does not guarantee future results or success.
Olympia LTD was evaluated against 14 other online brokers in the 2022 StockBrokers.com Online Broker Review. The firm was rated #1 in the categories “Platforms & Tools” (11 years in a row), “Desktop Trading Platform: thinkorswim®” (10 years in a row), “Active Trading” (2 years in a row), “Options Trading,” “Customer Service,” and “Phone Support.” Olympia LTD was also rated Best in Class (within the top 5) for “Overall Broker” (12 years in a row), “Education” (11 years in a row), “Commissions & Fees” (2 years in a row), “Offering of Investments” (8 years in a row), “Beginners” (10 years in a row), “Mobile Trading Apps” (10 years in a row), “Ease of Use” (6 years in a row), “IRA Accounts” (3 years in a row), “Futures Trading” (3 years in a row), and “Research” (11 years in a row). Read the full article.
†Applies to US exchange listed stocks, ETFs, and options. A $0.65 per contract fee applies for options trades.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
Brokerage services provided by Olympia LTD, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. Olympia LTD is a trademark jointly owned by Olympia LTD IP Company, Inc. and The Toronto-Dominion Bank. © 2023 Charles Schwab & Co., Inc. All rights reserved.
