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Margin Requirements

Index Options

  0-24 CONTRACTS

$10,000.00

25-50 CONTRACTS

$25,000.00

Equity Options

  0-24 CONTRACTS

$10,000.00

25-49 CONTRACTS

$15,000.00

50-99 CONTRACTS

$25,000.00

100 or MORE

$37,500.00



About the WallStreet*E MARGIN ACCOUNT
A margin account allows you to use your securities as collateral for the purchase of more securities or even for a personal loan (using personal checks). You can use a marginal account to increase earning potential in a bull market or as a short-term loan in a bear market. Although you do pay margin interest for this privilege, it is lower than many major credit cards.
Frequently Asked Questions on Margin
Why have a Margin Account?
Borrowing on margin allows you to extend your WallStreet*E account, using your securities as collateral for this loan. With this loan you can:
  • Purchase Additional Securities: This is the most common use of a margin account.
  • Increase Profit Potential: With a margin account you are entitled to all the dividends paid even if the stock is on margin.

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What is the difference between a margin and cash account?
With a margin account, you do not need one hundred percent of the purchase price deposited in your account in order to purchase a stock. Stock that you already own can be used a collateral to purchase additional stock or even for a personal loan. In a cash account you can only purchase securities with cash from your account

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What is an example of a margin account?
For example lets say you bought one hundred shares of xyz stock for $5,000 in a cash account. In a margin account you could buy another $5,000 of xyz stock giving you a grand total of $10,000 of xyx stock ($5,000 on margin) even if you only have $5,000 in your account.

Suppose that you had 5,000 to invest and picked a stock selling for $50 that you thought was going up. Under a 50% margin rule you can buy 200 shares of the stock as opposed to just 100 shared, with your $5,000 *. If the stock goes up five points, you make $1,000 instead of $500. If the stock goes down you would receive a margin call.

* This does not include any taxes, commissions, or margin interest which may be due.

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What will it cost me?
Margin Lending Rates vary based on the current Federal Reserve Broker Call Rate. Rates also vary depending on the size and the volume of the account. Please consult us for current rates and further details.
E-mail:info@wallstreete.com
Toll Free: 1-888-WALL-STE (1-888-925-5783)
Telephone: (888)-925-5783 or (305)-266-9120

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Is there risk and is it worth it?
As with any borrowing there is always risk. If the securities that are held as collateral fall in price below certain percentage you will receive a margin call. This means you must make a deposit to increase your collateral. Always use conservative estimates when investing in margin securities and always take into account possible market fluctuations.

The interest rate is often comparable to, if not lower than, the prime interest rate -- the rate offered by banks to their best business customers. Gains in your securities can pay this interest.

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How do I open a margin account?
First, request a new account application and make sure you specify that you want the ability to trade on margin or contact us.

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  We'd like to hear from you. If you have any questions or would like to speak with a transition specialist directly please contact us at:
888-925-57830

 
 

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