confirmed it was a 50% margin rate stock, but 30% used

[Tradesails]

I recently held/accumulated a 100% concentrated position (*yes me bad) in a non optionable Nasdaq listed stock.

The brokerage, a top tier confirmed it was a 50% margin rate stock buy, which falls under the brokerages margin guidelines of 50% for U.S listed stocks that are not option eligible.

After sustaining a 1 day huge loss as margin calls came flooding intraday, I investigated and discovered the brokerage was using a margin maintenance rate LOWER *(30%) vs. the Reg T margin of 50% or the 50% required for that stock in current margin maintenance. If anything they should have raised the 50% required as the position was so concentrated (100%).

In another brokerage account IB with the same stock, the 50% Reg T is the same as current margin maintenance 50%.

ACCOUNT VALUE would have fallen below T REG margin/ Margin maint. 1 month prior and every day after was negative thousands in margin excess. ( *if they used the 50% rate for this specific stock as IB account)

I would have never sustained the losses I did a month later if they had used the 50% rate as expected.

How could they go use a lower rate?

What am I missing and/ or what can i do or should do.?

Any help on the matter would be appreciated.

 

[Robert Morse]

30% sounds like the maintenance margin. You need to ask them .

 

[Tradesails]

Options eligible securities ($5.00+) 30%

30% sounds like the maintenance margin. You need to ask them .

Thank you, yes i understand as topic headline says that they used 30%, but how could use 30% as its stated on their margin agreement any non optionable stock the rate is 50%

U.S Listed Equity and ETF Securities Margin Requirement
Options eligible securities ($5.00+) 30%
Listed securities ($3.00+) 50%

...and confirmed via email,"...in this example the margin required is 50%
With 50k you could buy up to 100k worth of stock if you wished,.."

Thanks

 

[rb7]

I recently held/accumulated a 100% concentrated position (*yes me bad) in a non optionable Nasdaq listed stock.

The brokerage, a top tier confirmed it was a 50% margin rate stock buy, which falls under the brokerages margin guidelines of 50% for U.S listed stocks that are not option eligible.

After sustaining a 1 day huge loss as margin calls came flooding intraday, I investigated and discovered the brokerage was using a margin maintenance rate LOWER *(30%) vs. the Reg T margin of 50% or the 50% required for that stock in current margin maintenance. If anything they should have raised the 50% required as the position was so concentrated (100%).

In another brokerage account IB with the same stock, the 50% Reg T is the same as current margin maintenance 50%.

ACCOUNT VALUE would have fallen below T REG margin/ Margin maint. 1 month prior and every day after was negative thousands in margin excess. ( *if they used the 50% rate for this specific stock as IB account)

I would have never sustained the losses I did a month later if they had used the 50% rate as expected.

How could they go use a lower rate?

What am I missing and/ or what can i do or should do.?

Any help on the matter would be appreciated.

So you fu**ed up and you are trying to put the blame on your broker!!!

IMO, you should try to learn from this. You would have never sustained the losses if you would have done it right from the beginning, nothing to do with your broker. Sorry, I didn't want to be rude, but that was my first thought when I read your post.

Besides, why not give a call to your broker to get explanation.

 

[Tradesails]

As i said same 1 broker did it right and another didn't it seems, why is that blaming?. Who wouldn't want to know why this is the case.
I'm just trying to get background on such before calling when i'm back in the country.

 

[truetype]

Wonder if he'd be complaining about lax margins if the stock had gone up...