Schwab margin rates and requirements

Combined requirements

Equities

Equities table

Long: Common, Non-Leveraged ETFs/ETNs, Preferred & Warrants	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance
≥ $3.00 per share	Lesser of $2,000 or 100% market value	50% of cost	30% of market value
< $3.00 per share	100% market value	100% of cost	100% of market value
Short Sale: Common, Non-Leveraged ETFs/ETNs, Preferred & Warrants	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance
> $16.66	$2,000	50% net proceeds	30% short market value
$5.00–$16.66	$2,000	50% net proceeds	$5 per share
$2.50–$4.99	$2,000	50% net proceeds	100% short market value
< $2.50	$2,000	50% net proceeds	$2.50 per share
Other Equity Types/Positions	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance
Mutual Funds1	Lesser of $2,000 or 100% market value	50% of cost	30% of market value
Money Market Funds1	Lesser of $2,000 or 100% market value	10% of cost	10% of market value
Boxed Positions	$2,000	10% of market value	10% of market value
Long: Leverage ETFs/ETNs	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance
2X Leveraged ETFs/ETNs	Lesser of $2,000 or 100% market value	50% of cost	50% of market value
3X Leveraged ETFs/ETNs	Lesser of $2,000 or 100% market value	75% of cost	75% of market value
Short Sale: Leveraged ETFs/ETNs	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance
2X Leveraged ETFs/ETNs
> $8.33/share	$2,000	60% of net proceeds	60% short market value
$5.00–$8.33/share	$2,000	$5.00/share	$5.00/share
$2.50–$4.99/share	$2,000	100%	100%
< $2.50/share	$2,000	$2.50/share	$2.50/share
3X Leveraged ETFs/ETNs	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance
> $5.55/share	$2,000	90% of net proceeds	90% short market value
$5.00–$5.55/share	$2,000	$5.00/share	$5.00/share
$2.50–$4.99/share	$2,000	100%	100%
< $2.50/share	$2,000	$2.50/share	$2.50/share

¹ Not marginable until 30 days after the purchase settles (100% initial requirement).

Exchange-Traded Products are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.

Options

Options table

Options - Long	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance Req.
Equity Option  Foreign Currency Option  Index Options (Broad-based Index and Narrow-based Index)	Lesser of $2,000 or 100% market value	100% of cost	Same as Initial Requirement
Options - Short	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance Req.
Naked Calls (Broad-based Index)	$5,000	Greater of: 15% underlying value - out of the money amount + premium (20% for ETNs) 10% underlying value + premium  $100 per contract	Greater of minimum equity requirement or initial requirement
Naked 2X Leveraged ETF/ETN Calls (Broad-based Index)	$5,000	Greater of: 30% underlying value - out of the money amount + premium (40% for ETNs) 20% underlying value + premium $100 per contract	Greater of minimum equity requirement or initial requirement
Naked 3X Leveraged ETF/ETN Calls (Broad-based Index)	$5,000	Greater of: 45% underlying value - out of the money amount + premium (60% for ETNs) 30% underlying value + premium  $100 per contract	Greater of minimum equity requirement or initial requirement
Naked Puts (Broad-based Index)	Lesser of $5,000 or max loss	Greater of:  15% underlying value - out of the money amount + premium (20% for ETNs)  10% Contract Value + premium  $100 per contract or max loss	Greater of minimum equity requirement or initial requirement
Naked 2X Leveraged ETF/ETN Puts (Broad-based Index)	Lesser of $5,000 or max loss	Greater of: 30% underlying value - out of the money amount + premium (40% for ETNs) 20% Contract Value + premium $100 per contract or max loss	Greater of minimum equity requirement or initial requirement
Naked 3X Leveraged ETF/ETN Puts (Broad-based Index)	Lesser of $5,000 or max loss	Greater of: 45% underlying value - out of the money amount + premium (60% for ETNs) 30% Contract Value + premium $100 per contract or max loss	Greater of minimum equity requirement or initial requirement
Straddle/Combo (Broad-based Index)	$5,000	Uncovered requirements for the leg with the higher naked requirement, plus the premium of the other leg	Greater of minimum equity requirement or initial requirement
Spread (Broad-based Index)	$0/$5,000	Credit Spread: Difference in strike prices x 100 x number of contracts  Debit Spread: 100% of cost	Greater of minimum equity requirement or initial requirement
Complex Spread (Broad-based Index) Apply only to the following strategies: Box Spreads Butterfly Spreads Condor Spreads Iron Butterfly Spreads Iron Condor Spreads  +All component option legs must have the same expiration date.	$0/$5,000	Lesser of: i) Sum of component initial naked requirements ii) Maximum potential loss of strategy	Greater of minimum equity requirement or initial requirement
Options - Short, cont.	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance Req.
Naked Calls Options (Narrow-based Index)	$5,000	Greater of: 20% underlying value - out of the money amount + premium 10% underlying value + premium $100 per contract	Greater of minimum equity requirement or initial requirement
Naked 2X Leveraged ETF/ETN Calls (Narrow-based Index)	$5,000	Greater of: 40% underlying value - out of the money amount + premium 20% underlying value + premium $100 per contract	Greater of minimum equity requirement or initial requirement
Naked 3X Leveraged ETF/ETN Calls (Narrow-based Index)	$5,000	Greater of:  60% underlying value - out of the money amount + premium  30% underlying value + premium  $100 per contract or max loss	Greater of minimum equity requirement or initial requirement
Naked Puts (Narrow-based Index)	Lesser of $5,000 or max loss	Greater of:  20% underlying value - out of the money amount + premium  10% Contract Value + premium  $100 per contract or max loss	Greater of minimum equity requirement or initial requirement
Naked 2X Leveraged ETF/ETN Puts (Narrow-based Index)	Lesser of $5,000 or max loss	Greater of:  40% underlying value - out of the money amount + premium  20% Contract Value + premium  $100 per contract or max loss	Greater of minimum equity requirement or initial requirement
Naked 3X Leveraged ETF/ETN Puts (Narrow-based Index)	Lesser of $5,000 or max loss	Greater of:  60% underlying value - out of the money amount + premium  30% Contract Value + premium  $100 per contract or max loss	Greater of minimum equity requirement or initial requirement
Straddle/Combo (Narrow-based Index)	$5,000	Uncovered requirements for the leg with the higher naked requirement, plus the premium of the other leg	Greater of minimum equity requirement or initial requirement
Spread (Narrow-based Index)	$0/$5,000	Credit Spread: Difference in strike prices x 100 x number of contracts Debit Spread: 100% of cost	Greater of minimum equity requirement or initial requirement
Complex Spread (Narrow-based Index)  Apply only to the following strategies:  Box Spreads  Butterfly Spreads  Condor Spreads  Iron Butterfly Spreads  Iron Condor Spreads   +All component option legs must have the same expiration date.	$0/$5,000	Lesser of:  i) Sum of component initial naked requirements  ii) Maximum potential loss of strategy	Greater of minimum equity requirement or initial requirement
Equity	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance Req.
Naked Calls	$5,000	Greater of:  20% underlying value - out of the money amount + premium  10% underlying value + premium  $100 per contract	Greater of minimum equity requirement or initial requirement
Naked Puts	Lesser of $5,000 or max loss	Greater of:  20% underlying value - out of the money amount + premium  10% contract value + premium  $100 per contract	Greater of minimum equity requirement or initial requirement
Straddle/Combo	$5,000	Uncovered requirements for the leg with the higher naked requirement, plus the premium of the other leg	Greater of minimum equity requirement or initial requirement
Spread	$0/$5,000	Credit Spread: Difference in strike prices x 100 x number of contracts Debit Spread: 100% of cost	Greater of minimum equity requirement or initial requirement
Complex Spread  Apply only to the following strategies):  Box Spreads  Butterfly Spreads  Condor Spreads  Iron Butterfly Spreads  Iron Condor Spreads  +All component option legs must have the same expiration date.	$0/$5,000	Lesser of:  i) Sum of component initial naked requirements  ii) Maximum potential loss of strategy	Greater of minimum equity requirement or initial requirement
Protective Put	Lesser of $2,000 or 100% market value	Lesser of:  i) 10% of exercise price + out of the money amount  ii) Long stock requirement	Greater of minimum equity requirement or initial requirement
Protective Call	$2,000	Lesser of:  i) 10% of exercise price + out of the money amount  ii) Short stock requirement	Greater of minimum equity requirement or initial requirement
Conversion	Lesser of $2,000 or 100% market value	10% of exercise price	Greater of minimum equity requirement or initial requirement
Reverse Conversion	$2,000	10% of exercise price	Greater of minimum equity requirement or initial requirement
Collars with Long Equity	Lesser of $2,000 or 100% market value	Lesser of:  i) 10% of put exercise price + put out of the money amount  ii) 25% of call exercise price	Greater of minimum equity requirement or initial requirement
Cash Secured Equity Puts (CSEP)	$2,000 Account holders must hold and maintain assignment value in cash or cash equivalents: Money Market Funds Treasury Bills, Notes or Bonds maturing in less than a year	Account holders must hold and maintain assignment value in cash or cash equivalents including: Cash Money Market Funds Cash Equivalents which include: • Cash Deposits • Schwab Bank Deposits • Schwab Value Advantage Funds • Schwab Money Market Funds • Treasury Bills, Notes or Bonds maturing in less than a year	Account holders must hold and maintain assignment value in cash or cash equivalents including: Cash Money Market Funds Cash Equivalents which include: • Cash Deposits • Schwab Bank Deposits • Schwab Value Advantage Funds • Schwab Money Market Funds • Treasury Bills, Notes or Bonds maturing in less than a year

• IRA account initial minimum requirement for spreads is $5,000; special minimums, when applicable under select offers, supersede published minimums.
• All component option legs must have the same expiration date.

Debt

Debt table

Security Type	Initial Min Equity Req.	Schwab Initial Req.	Schwab Maintenance Req.
Corporate Bond Coupon Corporate Bond Non-Convertible	Lesser of $2,000 or 100% market value	30% of cost	Greater of 30% market value or 20% of principal, not to exceed 100% market value
Corporate Bond Convertible	Lesser of $2,000 or 100% market value	50% of cost	Greater of 30% market value or 20% of principal, not to exceed 100% market value
Government Agency Coupon Government Agency Strip Government Agency Pass-through Government Agency CMO	Lesser of $2,000 or 100% market value	20% of cost	Greater of 20% market value or 15% of principal, not to exceed 100% market value
Municipal Bond Coupon	Lesser of $2,000 or 100% market value	25% of cost	Greater of 25% market value or 15% of principal, not to exceed 100% market value
Treasury Bill	Lesser of $2,000 or 100% market value	10% of cost	1% market value
Treasury Coupon	Lesser of $2,000 or 100% market value	10% of cost	1 year but less than 3 years to maturity: 2% mkt. value  3 years but less than 5 years to maturity: 3% mkt. value  5 years but less than 10 years to maturity: 4% mkt. value  10 years but less than 20 years to maturity: 5% mkt. value  20 years or more to maturity: 6% mkt. value
Treasury STRIP	Lesser of $2,000 or 100% market value	10% of cost	6% market value
Unit Investment Trust	Not Marginable	Not Marginable	Not Marginable

State, Municipal and Corporate bonds, with an investment grade rating (IG) or better, are marginable.

Fixed-income investments are subject to various risks, including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. For further details, please feel free to contact a Schwab Fixed Income Specialist at 877-563-7818.