Portfolio Margin account?

Discussion in 'Risk Management' started by pak, Jan 4, 2009.

  1. pak


    1. Can you daytrade stocks with a Portfolio Margin account?

    2. Does this give you more then the 4-1 leverage and if so how much more?
  2. HLB


    not sure how it's good for daytrading, except maybe for parking huge amount of cash into EFP or daytrading pairs.

    The buty of portfolio margin in market-neutral / pair-trading stocks/options/SSF/EFP plays.

    If you have concentrated position your margin will be worse than RegT.

  3. I would like to use portfolio margin but I have never read or heard any explanation of it that I have ever understood.
  4. my main question......does portfolio margin give you better than 2-1 margin overnight ?????
  5. HLB


    if your position is hedged then yes,
    if your position is risky - then margin will be worse than RegT
  6. yes you can daytrade w/ PM. Think or Swim has about a 100K min account value to get this margin. Its commonly referred to "risk margin" and that is basically how the broker will understand your trades in order to determine the level of margin to grand your various position types.