Minimum margin requirement is regulated by
FINRA. Requires the customer to deposit with the brokerage firm a minimum of 2,000 or 100% of the purchase price of the securities, whichever is less.
Max loss on a credit spread
Difference between strike prices less the net premium
Required margin on credit spreads
the amount of risk (difference of the strike prices - the premium received), and it must be paid in full.
A frozen account is not permitted to trade unless
the securities are deposited into the account in advance of any trade.
A restricted account is best described as
an account with an equity balance in the 25% - 50% range.
Covered options contracts have what Reg T deposit requirement?
Zero, the option is covered by long stock (for covered calls) / short stock (for covered puts). Client needs 50% of the stock position.
