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Virtual Account Buying Power Calculations

Virtual Account Buying Power Calculation

This is an example of how Buying Power is calculated. Check with your broker for specifics on your real accounts.

Margin

All margin accounts are subject to a $2,000 minimum equity requirement. ChoiceTrade requires $25,000 in account equity for naked put writing and $100,000 for naked call writing. Please click here to read our Risk Disclosure for important information regarding daytrading rules. Please see the terms of ChoiceTrade's Margin and Options agreements.

Special Notes Volatile Stock Requirement: Some stocks deemed to be volatile may be held at a higher requirement. New Issues: Generally, newly issued stocks have a 100% initial and maintenance requirement for the first 30 days of trading Leveraged ETFs: Minimim cash requirement for long positions: 2X ETF (200% Leveraged) = 50% 3X ETF (300% Leveraged) = 100% Minimim cash requirement for short positions: 2X ETF (200% Leveraged) = 60% 3X ETF (300% Leveraged) = 100%
POSITION	INITIAL MARGIN	MAINTENANCE MARGIN
Long Stock	1. 50% of the purchase price of marginable securities 2. 100% of the purchase price of non-marginable securities $2000 minimum margin account equity for all margin transactions $500 minimum cash balance required for Bulletin Board and OTC Market Stocks	1. 25% of the current market value of the long securities positions in marginable securities. 2. 100% of the current market value of the long securities positions in non-marginable securities; See Special Notes below
Short Stock	The greater of: 1. 50% of the sale price of marginable securities; or 2. $5.00 per share $2000 minimum margin account equity for all margin transactions	1. For marginable securities priced $2.50/share and under: $2.50/share 2. For marginable securities priced $2.51 to $5.00 per share: 100%. 3. For marginable securities priced $5.01 and above: greater of 50% or $5.00 per share. See Special Notes below
Long Calls or Puts	100% of the cost of the options.	100% of the current market value of options.
Short Uncovered Calls	The greater of: 1. 100% of the option proceeds plus 20% of the underlying stock less any amount the option is out-of-the-money; or 2. 100% of the option proceeds plus 10% of the underlying stock $100,000 minimum margin account equity	The greater of: 1. The current marked-to-market value of the option plus 20% of the underlying stock less any amount the option is out-of-the-money; or 2. The current marked-to-market value of the option plus 10% of the underlying stock
Short Puts	The greater of: 1. 100% of the option proceeds plus 20% of the underlying stock less any amount the option is out-of-the-money; or 2. 100% of the option proceeds plus 10% of the strike price. $100,000 minimum margin account equity	The greater of: 1. The current marked-to-market value of the option plus 20% of the underlying stock less any amount the option is out-of-the-money; or 2. The current marked-to-market value of the option plus 10% of the strike price
Short Covered Calls	None required on short call.	None required on short call.
Debit Spread	100% of the net debit	100% of the current market value of the position.
Credit Spread Market Orders	Value of the difference between the strike prices $2,000 minimum margin account equity	The lesser of: 1. Value of the difference between the strike prices of the vertical or; 2. The maintenance margin requirement of the short call or put
Credit Spread Limit Orders	Value of the difference between the strike prices less the credit to be received $2,000 minimum margin account equity	The lesser of: 1. Value of the difference between the strike prices of the vertical or; 2. The maintenance margin requirement of the short call or put
Long Butterflies/ Condors	100% of cost of butterfly or condor.	100% of current market value of butterfly or condor.
Short Butterflies/ Condors	Initial margin requirement of the short vertical of the butterfly or condor.	Maintenance margin requirement of the short vertical of the butterfly or condor.
Long Straddles/ Strangles	100% of the cost of the straddle or strangle.	100% of the current market value of the straddle or strangle.
Short Straddles/ Strangles	The initial margin requirement for the short put or short call, whichever is greater, plus the premium of the other option; $100,000 minimum margin account equity	The maintenance margin requirement for the short put or short call, whichever is greater, plus the premium of the other option;
Long Call or Put Calendar Spreads	100% of the cost of the calendar spread.	100% of the current market value of the calendar spread.
Short Call or Put Calendar Spreads	Initial margin requirement of short call or put; $2,000 minimum margin account equity	Maintenance margin requirement of short call or put;

by Support Team

Journal - Color Tagging

After Reconciling your closed trades, click “OK” to have the Journal entries updated.

Yellow tag: There was a change in the Option position. For example, an option was exercised before expiration – or the order was adjusted.

No tag: There was no change and the Option expired worthless.

Green Tab: Profitable trade

Red Tab: Losing trade

by Support Team

Working Orders Displayed on Chart

Charts display working orders and existing positions of selected brokerage accounts, currently Choice Trade and TD Ameritrade. More brokerages will be forthcoming.

Stocks show a horizontal line at the entry price.
Options show a horizontal line at the strike price.
Green for Long and Red for Short.

The group of 4 icons, located above the Working Order, allow you to Edit (Gear), Hide(Eye) Refresh (Circle arrows) or Remove (X).

Display choices including colors and line width are available in settings by clicking the “Gear” Icon.

by Support Team

Options Chain Analysis

The Option Chain pages offers a 3-D analysis comparing expiration dates by selected criteria.

Click on “Chain Analysis” to display the graph.

Use the drop-down boxes to view the tables by Implied Volatility, Volume, Open Interest, Price, Extrinsic Value, Delta or Intrinsic Value.

Toggle the view by using the clickable legend to select the Expiration Dates to view.

by Support Team

Other Navigation

Icons = Navigation

The Action (Arrow) icon will provide different actions depending on where you are in the platform. For example if you are in the Market or Find tab, ‘Detail‘ will provide a Quote Popup. ‘Research‘ will take you to the Dashboard – overview – of the stock. ‘Options‘ will take you to that part of the platform etc.

When in a “Trade Finder Scan” (identified by the icon), the Action icon choices includes: ‘Analyze Position’ which will take you to the Options tables and/or ‘Trade’ which will lead you to the Order Ticket of the Brokerage Account from the menu.

The Action Icon is also found in the Journal. Under the “Positions” tab, clicking on the icon allows you to Expand/Collapse details of the trade, Analyze or Close the trade among other choices.

by Support Team

Reminder: Office Hours are available Wednesdays and Fridays to get your questions answered

Support Team

Virtual Account Buying Power Calculations

Virtual Account Buying Power Calculation

Margin

Journal - Color Tagging

Working Orders Displayed on Chart

Options Chain Analysis

Other Navigation

Icons = Navigation