Questrade Margin Centre | Buy Stocks on Credit| Borrow on Stocks

A margin account allows you to buy securities on credit and to borrow on securities already in the account. Buying on credit and borrowing are subject to standards established by Questrade, the regulators, and by the firm carrying the account. Interest is charged on any borrowed funds only for the period of time the loan is outstanding. You should be aware that trading on margin presents additional risks. Please review our risk disclosure statement.

What is a margin call?

A margin call is created when an account has maximized the amount it can borrow. Often this is the result of stock holdings dropping below the level required to maintain the loan extended.

What is the difference between initial and maintenance margin?

Initial margin is the good faith deposit or down payment required to be in the account BEFORE a trade is placed. The lower the initial margin, the higher the leverage. Maintenance margin is the deposit required to maintain an open position. Failure to preserve this deposit will result in the liquidation of positions by Questrade.

What are Questrade's margin requirements for stocks held overnight?

Margin requirements on stocks positions held overnight are detailed below.

Equity securities:

Share price	Margin requirements
Reduced margin eligible securities	30% of the market value
Securities selling at $2.00 or more	50% of the market value
Securities selling at $1.75 to $1.99	60% of the market value
Securities selling at $1.50 to $1.74	80% of the market value
Less than $1.50	100%

Questrade reserves the right to enforce more stringent requirements at our sole discretion. For further information about margin requirements please visit our stock margin page.

What is the maintenance requirement for a forex standard account?

The maintenance margin requirement for standard accounts is 50% of the initial margin requirement. Please visit our forex margin page for more details.

How much time do I have to cover a margin call?

A margin call is due immediately when called. Questrade may offer an extension at our own discretion.

Buying power

Buying power (BP) is the amount of funds you can use to purchase stock intraday.

Margin equity (EQ)

The entire balance of your account, including all cash and all securities positions, less the outstanding margin debit balance.

Market value (MV)

Shares X current price.
e.g. 1,000 shares of MSFT @ 120 = MV of $120,000

Maintenance requirements (MR)

That part of the value of your securities positions withheld from your equity when calculating buying power. Please note that all DTBP figures are calculated pursuant to the minimum maintenance requirements which are shown above.

Maintenance requirements for buying power

30% of MV for long reduced margin eligible securities positions
e.g. long 1,000 MSFT @ 120
MV = $120,000
MRDTB = $36,000

30% of MV or $5 a share (whichever is greater) for short securities positions
e.g. short 1,000 MSFT @ 120
MV = $120,000
MRDTB = $36,000

100% of cash positions (penny stocks [stocks under $5] bulletin board securities, etc.)
e.g. long 1000 SPAZ (penny stock) @ 4
MV = $4,000
MRDTB = $4,000

Maintenance excess (ME)

Equity - maintenance requirements for trading buying power.

Buying power (BP) in a margin account

300% of maintenance excess, or maintenance excess x 3.

Mark to market

At the end of every day, each stock you are holding overnight gets marked to the market. This means that any positions you are carrying overnight will be valued at the official closing bell price and your equity will be raised or lowered accordingly. Essentially your account is given a value which is based on any cash (or debits) plus the current value of your positions (marked to market).

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