Questions regarding margin, margin interest, or calculation procedures, please call Zions Direct at 1-800-524-8875.
Commissions and fees subject to change without notice.
Type of Security
Initial Requirement
Maintenance Requirement
Stocks And Warrants
Listed or Fed-Approved OTC Equities
50% of the net amount
The greater of 30% of the market value or $3 per share
Other Equities and Warrants
100% of the net amount
100% of the market value
Equity (listed or unlisted) Short sales
50% of the net proceeds
The greater of 35% of the short market value or $5 per share
Note: Initial margin is not extended on stocks trading below $5 per share.
Mutual Funds And Unit Investment Trusts
All margin eligible
100% of the net amount; purchases must be made in the cash account
100% of the net amount for the first 30 days after the settlement date, if transferred to a margin account, then the greater of 30% of the market value or $3 per share
When Issued Securities
All
The greater of 25% of the net amount or $2,000, not to exceed 100% of the net amount
The greater of 25% of the net amount or $2,000, not to exceed 100% of the market value
Notes:
For margin accounts, when issued securities are treated as if they were issued securities.
Initial public offerings of when issued securities are not marginable
Fixed Income Securities
Corporate Bonds (listed and Fed-approved OTC corporate bonds)
a. Convertible Bonds
50% of the net amount
30% of the market value
b. Interest-Paying Corporate Debt (rated no lower than BAA3 by Moody's or BBB-by S&P)
50% of the net amount
30% of the market value
c. Zero - Coupon Bonds (rated no lower than BAA3 by Mooody's or BBB- by S&P; includes CATs, TIGRs, etc.)
The greater of 30% of the net amount or 10% of the face amount
The greater of 25% of the market value or 10% of the face amount
Municipal Bonds
a. Interest-Paying Municipal Bonds (rated no lower than BAA3 by Mood'sy or BBB- by S&P)
30% of the net amount
25% of the market value
b. Minicipal Zero-Coupond Bonds (rated no lower than BAA3 by Moody's or BBB-by S&P)
The greater of 30% of the net amount or 10% of the face amount
The greater of 25% of the market value or 10% of the face amount
Government Securities
a. U.S Government Direct Obligations (for example, bills, notes, and bonds)
10% of the net amount
8% of the market value if 20 years to maturity
7% of the market value if 10 years to maturity
6% of the market value if 5 years to maturity
5% of the market value if 3 years to maturity
4% of the market value if 1 year to maturity
3% of the market value if less than 1 year to maturity
b. U.S. Government Agency and Pass-Through Securities (for example, GNMA and FNMA)
15% of the net amount
10% of the market value
c. U.S. Government Zero-Coupon Bonds
10% of the face amount
The greater of 7% of the market value or 7% of the face amount
d. Other Bonds
100% of the net amount
100% of the market value
Note: Neither initial nor maintenance margin is extended on interest-paying bonds trading below $40 per bond or on zero-coupon bonds trading below $10 per bond.
Options and Option Strategies
No account is permitted to execute a straddle, spread, or uncovered (naked) option transaction without the required margin in the account, including minimum equity of $10,000.
Option Transactions
Initial And Maintenance Requirements
Long Purchases
Payment in full. (During the current expiration cycle, equity must be in the account before the trade is executed.) The cycle begins on the Monday following the prior month's expiration date.
Spreads
Spreads are not permitted on European-style options unless both sides expire at the same time.
Credit
The net premium difference must be paid in full, plus there is a $10,000 minimum equity requirement.
Debit
The greater of 100% of the strike price differential or $10,000 minimum equity.
Uncovered Options
The initial and maintenance requirement is the greater of the following:
Listed Equity/Narrow and Broad-Based Index Options
The premium plus 30% of the market value of the underlying equity, adjusted for the out-of-money amount, but not less than 15% plus the premium
Zions minimum per contract:
Puts: If the strike price is less than $50 per share, the minimum is $1,000 per contract. If the strike price is more than $50 per share, the minimum is $2,000 per contract, not to exceed 100% of the strike price
All Other Options
Contact Zions Direct 1-800-524-8875
Straddles
The greater of the requirement on the put or call, plus the premium on the other side.
Covered Leaps with an Expiration Period Greater Than Nine Months
Normal equity maintenance plus 100% of the difference between the intrinsic value and the LEAP market value.
Notes:
The minimum equity requirement is $ 2,000 for margin accounts
Special requirements apply to accounts that are classified as pattern day traders. Please call Zions Direct 1-800-524-8875 for more information.
Concentrated or volatile securities may be subject to higher margin requirements.
Requirements set forth in this document are subject to change by Zions Direct at is sole discretion at any time.
Bank Deposits and Certificates of Deposit (CDs) are FDIC Insured up to Applicable Limits
Investment Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
Securities products and services offered by Zions Direct, Member FINRA/SIPC, a non-bank subsidiary of Zions Bank.
Stocks
Stocks
