Margin Requirements and Concentration Guidelines
The following margin rates and concentration guidelines are subject to change at any time, without notice.
For more information, please review the Margin Disclosure Statement.
Please also review a few examples of Margin Calculations.
CANADIAN SECURITIES
Category of
Security |
Margin
Requirement |
Concentration Guidelines |
| TSX Listed/ IIROC Approved List for Reduced Margin ($5.00+) |
30% |
$1,000,000
Loan Value |
| TSX Listed securities ($3.00+) |
50% |
$500,000
Loan Value |
| TSX Venture ($3.00+) listed securities |
75% |
$25,000
Loan Value |
| Listed securities under $3.00 |
100% |
Not Applicable |
| Listed Warrants ($3.00+) |
50% |
$250,000
Loan Value |
U.S. SECURITIES (NYSE, NASDAQ, AMEX)
Category of
Security |
Margin
Requirement |
Concentration Guidelines |
| Option eligible securities ($5.00+) |
30% |
$1,000,000 (U.S.)
Loan Value |
| Listed securities ($3.00+) |
50% |
$500,000 (U.S.)
Loan Value |
| Listed securities under $3.00 |
100% |
Not Applicable |
| OTC Bulletin Board |
100% |
Not Applicable |
SECURITIES WITH HIGHER MARGIN REQUIREMENTS
Please be advised that TD Waterhouse has reduced and/or limited the loan value and concentration guidelines on certain securities, due to their price volatility or liquidity.
Review the list.
|
FOREIGN SECURITIES
Category of
Security |
Margin
Requirement |
Concentration Guidelines |
| Paris, London & Tokyo Stock Exchanges |
50% |
$250,000
Loan Value |
| Other Stock Exchanges |
100% |
Not Applicable |
MUTUAL FUNDS
Category of
Security |
Margin
Requirement |
Concentration Guidelines |
| Mutual Funds priced over $3.00 per unit (excluding money market mutual funds) |
50% |
$500,000 |
| Mutual Funds priced under $3.00 per unit |
100% |
Not Applicable |
| Money Market Mutual Funds priced over $3.00 per unit |
5% |
$1,000,000 |
INSTALLMENT RECEIPTS
The margin requirement calculation is as follows:
The Lesser of:
- The greater of:
- margin rate of the underlying interest
- margin rate of the underlying interest +
(future payments of installment receipts - market value of the underlying)
OR
- market value of the installment receipts.
|
BONDS
Please note that margin is not extended for any bond with a Credit Rating below Investment Grade.
Category of
Security |
Margin
Requirement |
Concentration Guidelines |
| Government of Canada |
4% |
$1,000,000
Loan Value |
| Provincial Bonds |
5% |
$1,000,000
Loan Value |
| Municipal Bonds |
10% |
$1,000,000
Loan Value |
| U.S. Treasury Bonds |
4% |
$1,000,000
Loan Value |
| Corporate Bonds |
15% |
$750,000
Loan Value |
| Convertible Bonds* |
See below |
|
| Trading ABOVE par, use rates above plus: |
| For: securities eligible for reduced margin |
30% excess Market Value over par with a minimum of 10% of par |
$500,000
Loan Value |
| For: Securities eligible for margin |
50% excess Market Value over par with a minimum of 10% of par |
$500,000
Loan Value |
| For: Securities not eligible for margin |
100% excess Market Value over par with a minimum of 10% of par |
$500,000
Loan Value |
| Trading AT or BELOW par, use rates above plus: |
| Bond with rating greater than Investment Grade |
10% of par value |
$500,000
Loan Value |
| Bond with rating Investment Grade or below or selling at 50% of the par value or less |
50% of market value |
$500,000
Loan Value |
| Foreign issued bonds |
100% |
Not applicable |
| Eurobonds |
25% |
$750,000
Loan Value |
| Mortgage-backed securities |
10% |
$750,000
Loan Value |
| Strips - Maturity less than 20 years |
1.5 times* applicable rate** |
$750,000
Loan Value |
| Strips - Maturity of 20 years and greater |
3 times* applicable rate** |
$250,000
Loan Value |
MONEY MARKET
Category of
Security |
Margin
Requirement |
Concentration Guidelines |
| Canada Savings Bonds |
100% |
Not Applicable |
| Provincial Savings Bonds |
1% |
$1,000,000
Loan Value |
| T-Bills |
1% |
$1,000,000
Loan Value |
| GICs |
15% |
$1,000,000
Loan Value |
| Term Deposits |
4% |
$1,000,000
Loan Value |
| Banker's Acceptance |
4% |
$750,000
Loan Value |
| Commercial Paper |
15% |
$750,000
Loan Value |
PRECIOUS METALS
Category of
Security |
Margin
Requirement |
Concentration Guidelines |
| Gold |
20% |
$250,000
Loan Value |
| Silver |
20% |
$250,000
Loan Value |
| Platinum |
20% |
$250,000
Loan Value |
SHORT SELLING
Category of
Security |
Margin
Requirement |
Concentration Guidelines |
| Federal Bonds |
110% |
$1,000,000
Market Value |
| Provincial and Provincial Guaranteed Bonds |
110% |
$750,000
Market Value |
| U.S. Option Eligible Securities |
130% |
$250,000
Market Value |
| U.S. Non-Option Eligible Securities ($3.00+) |
150% |
$250,000
Market Value |
| TSX Listed / IIROC Approved List for Reduced Margin ($5.00+) |
130% |
$250,000
Market Value |
| TSX Listed - Increased Margin Requirement |
150% |
$250,000
Market Value |
| TSX Venture - Tier 1 and Tier 2 ($3.00+) |
175% |
$25,000
Market Value |
Listed Equities
($2 - $2.99) |
200% of Market Value |
$25,000
Market Value |
Listed Equities
($1.50 - $1.99) |
$3 per share |
$25,000
Market Value |
Listed Equities
($1.00 - $1.49) |
200% of Market Value |
$25,000
Market Value |
Listed Equities
(Under $1) |
Not permitted |
|
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