OptionsHouse - how to calculate stock buying power + max allowed portfolio value

Discussion in 'Retail Brokers' started by VegasWhiz, May 1, 2011.

  1. VegasWhiz

    VegasWhiz

    Is anyone here facing issues with how optionshouse calculates stock buying power and max allowed portfolio value ? Per optionshouse faq section, margin requirements are as follows:

    =======
    The maintenance margin requirement for long stock above $5 is based on a comparison of the stock position’s value to the absolute value of all marginable stocks in the account. This includes long and short stock.
    Stock position less than 25% of absolute value of portfolio: 25%
    Stock position 25-35% of absolute value of portfolio: 30%
    Stock position 35% or more of absolute value of portfolio: 40%
    =======

    Let’s assume all my positions are long stocks above $5 and each stock position is less than 25% of my total portfolio. In this scenario, if I have $100K in my account, I should be able to have a portfolio value of upto $400k if I were to take full advantage of maintenance margin requirements. That is, 4 times the cash in my account. But, I noticed that I’m only able to get upto around 3.17%. Anyone else noticed this ?

    Any help to demystify Optionhouse’s calculations in this regard would be really appreciated.
     
  2. spd

    spd

    I havent funded my OptionsHouse account yet, but the demo margin does seem a little wonky. I havent sat down and done the math yet though.