The Pattern Day Trading (PTD) Rule applies at TradeStation. Remember that when you trade options, the minimum size is 1 contract, which represents 100 shares of the underlying asset. However, less risky strategies, such as buying a call option, are permitted with cash accounts, too. Some riskier trade types, like selling call options on stocks you don't own or writing an uncovered put option, can only be executed if you have a margin account. Options trading strategies involve different degrees of risk and complexity. TradeStation provides options on 10 exchanges. Source: Global derivatives marketplace CME Group Options minimum account balance It is not a down payment and you do not own the underlying commodity.The futures margin generally amounts to a smaller percentage of the notional value of the contract, typically 3-12% per futures contract as opposed to up to 50% of the face value of securities purchased on margin. The futures margin is the amount of money that you must deposit and keep with your broker when you open a futures position. Remember that margin requirements for different asset classes are different. The maintenance margin of S&P 500 futures (ticker: ES), for example, stood at $11,000 as of March 1, 2021. When volatility is high, future exchanges may increase margin requirements. There isn't a legal minimum balance that you have to maintain to day trade futures. You can trade futures on 11 exchanges.įor futures contracts, futures exchanges set initial margin requirements as a percentage of the contract to be traded. TradeStation gives access to futures trading. TradeStation offers derivative products to its clients: In both cases, you have to comply with margin requirements and maintain the minimum account balance at all times. On the other hand, if you trade derivative assets such as futures or options, the minimum account balance depends on the specific asset you trade as well as the broker’s requirements. There are general margin requirements for all stocks when you trade stocks/ETFs on margin at a US-regulated broker. Note that margin requirements for different asset classes, such as stocks and options, may be different. The term margin is used widely in the financial world. You can check the minimum deposit at TradeStation here. The minimum deposit requirement means that you will need to transfer this amount to your brokerage account from your bank account in order to start trading. While some brokers do not require a minimum deposit, others do.
The minimum deposit is the minimum amount required for opening an online brokerage account. It is not a good idea to wait until you get a margin call, because if you miss it, your broker may liquidate some of your assets and you could end up with considerable losses. You should monitor your account at least on a daily basis to make sure you always meet your broker's margin requirements.
If the amount of funds in your account falls below the minimum account balance requirement, you will have to deposit additional funds.īear in mind that it is your responsibility to ensure your account is properly funded. Having this amount available is necessary to avoid negative consequences such as a margin call or the liquidation of your assets. The minimum account balance is the amount that you're required to maintain on your account when you use leverage/margin in trading. In turn, a margin account allows you to borrow money from your broker so you will have to comply with margin rules. Some brokers don’t even require a minimum deposit for cash accounts.
If you open a cash account, you don't have to worry about margin requirements because you can only invest the funds that you deposited in the account. Note that most brokers offer several account types. The following derivative products are also accessible: Derivative product selection at TradeStation TradeStation offers margin and derivative trading: You can trade stocks/ETFs on margin, meaning you can borrow money from the broker to increase your trading position. To prevent any confusion, we'll tell you what they are and how they differ from each other. Have you ever accidentally mixed up the minimum account balance with the minimum deposit? Rest assured, you’re not the only one. Find out in which cases you must have a minimum balance at TradeStation. This article discusses what the minimum account balance (if required) and the minimum deposit (if required) at TradeStation stand for.