Portfolio margin offers qualified individuals access to risk-based margin. Here's the difference between portfolio margin and Regulation T margin.

Portfolio margin | Regulation T margin |
---|---|
Maintenance excess (buying power) = Net liquidation value – Margin requirements | Margin equity = Stock + (+/– Cash balance) |
No difference between initial and maintenance margins | Maintenance margin = 50% initial for marginable securities |
Treatment of volatility is applied to margin requirement | 25% SRO* requirements; marginable long equities = 25% requirement; short equities = 30% requirement. *SRO (Self- Regulatory Organization) |
Generally broad-based indexes: –15% and 15%; equities: +15% and –15%; allows up to 6.6 to 1 leverage | Schwab uses 30% minimum house maintenance requirement on short and marginable long equities |
Allows for correlation and margin offsets between similar investments | Options requirements computed in real-time using FINRA rules and fixed percentages |
Long options are marginable and can be used as collateral for other marginable positions | Long options are not marginable and have a 100% requirement |