Margin Policy and Fees - For Active Traders

Leverage Schedule

 

By trading on margin, you are essentially taking a loan against your holdings or equity. This means that as your account equity changes, the amount that you can borrow will also change. Our Leverage Schedule is based on the equity value of your account.

 

Note carefully that if your account value falls below $500 leverage will be removed and your account will be converted to a cash account. If your account value falls below $350 your trading permissions will be removed and your account will be closed until the balance is above $350.

                 Starting Account Equity  Intraday Buying Power
                      $0 - $499                1:1
                      $500 - $2499                4:1
                    ≥$2500                6:1

Overnight margin is 2:1

Minimum initial funding amount is $500

* CMEG urges all clients to use caution when trading on margin.

Maintenance Margin and Fees


Margin trading allows you to borrow against your existing holdings, leveraging them to take additional positions. CMEG's rules-based margin requirements places predefined and static calculations are that are applied to each position or groups of positions. For your knowledge these rules are listed below. CMEG urges all clients to be mindful of these requirements when trading. Note that CMEG reserves to right to modify certain margin policies to adjust for unprecedented volatility and risk in financial markets to ensure that margin accounts remain within the firm's risk parameters.

We are focused on realistic and forward-looking approaches to risk management. We strongly encourage all clients to monitor this page and the Resource Page for updates regarding margin policy changes.

 

For Accounts with Equity below $500

(These accounts always have 100% maintenance requirement)

  1. 1. A 100% maintenance requirement for stocks that are priced at more than $4 per share  
  2. 2. A maintenance requirement of 100% per share applies to marginable stock valued from $2 to $4 per share
  3. 3. A maintenance requirement of 100% is needed for all long stocks trading at $2 and below


For Accounts with Equity at $500 - $2499:

  1. 1. A 25% maintenance requirement for stocks that are priced at more than $4 per share.
  2. 2. A maintenance requirement of 50% applies to marginable stock valued from $2 to $4 per share.
  3. 3. A maintenance requirement of 100% is needed for all long stocks trading at $2 and below.

 


For Accounts with Equity $2500 and greater:

  1. 1. A 16% maintenance requirement for stocks that are priced at more than $4 per share.
  2. 2. A maintenance requirement of 50% applies to marginable stock valued from $2 to $4 per share.
  3. 3. A maintenance requirement of 100% is needed for all long stocks trading at $2 and below.

 

Global Rule:  4. A maintenance requirement of 100% is needed for all short stocks trading from $5 per share and less.

 

Selling Short Stocks

 


With CMEG, clients can borrow from our extensive list of stocks to short. A stock can either be Hard to Borrow (HTB) or Easy to Borrow (ETB). Clients who wish to short HTB stocks can utilize CMEG’s Stock Locate service via the Traders Elite Pro* platform to place locate requests. All short locate requests are valid for same-day trading, and new locate requests are required for each trading day. Any approved locate that is not used the same day expires at the end of the trading day.

Each locate requests will be given a rate dependent on the stock. For example, a locate requests for 100 shares of ABC stock may receive a rate of $.05 per share, if you accept, you will be charged a $5 locate fee whether you trade it or not. Locate requests also incur a $25 service charge. For shorts held overnight, you will incur an Short Position Overnight Fee of 0.5% the market value of the position.

Note: In accordance with our Margin Policy, CMEG does not offer margin or short stocks below $5.

*The stock locate service is only available via the Traders Elite Pro-powered by Sterling platform

*Accounts must be compliant with overnight margin (2:1) by 3:50pm EST
* In the interest of ensuring the continued safety of its clients, CMEG may modify certain margin policies to adjust for unprecedented volatility in financial markets. The changes will promote reduction of leverage in client portfolios and help ensure that clients' accounts are appropriately capitalized.
* Accounts that fail to meet the above requirements will be liquidated in its entirety and incur a $25 margin call fee.
* Accounts with equity below $500 will lose margin capabilities and be converted to cash accounts.
*Accounts must maintain a minimum balance of $250 - $350 to meet monthly subscriptions and to maintain trading permissions.
* All liquidations are subject to the normal commission schedule.

Long Position Overnight Fee


Interest fees are charged per day based on the market value of long positions held at the close of market.

Interest Rate Position Value
7.5% APR $0 - $100K
6.5% APR $100,000.01 to $1M
5.0% APR $1,000,000.01 to $3M
4.5% APR $3,000,000.01 and above

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