Buying Power & Margin Requirements
Your buying power is set by your account type. On top of that, every position must meet the margin the law and our clearing rules require — both to open it (Regulation T) and to keep holding it (maintenance). Where two rules apply, the stricter one applies.
1. Buying Power by Account Type
Buying power determines how much capital you can deploy. Long and short limits apply per position, within your account's total buying power.
SageTrader
Minimum deposit: $100
Feature | Buying Power |
|---|---|
Total buying power | 1× account equity |
Maximum long position | 1× account equity |
Short selling | Not available |
SageTrader with Short Selling
Minimum deposit: $100. Initial deposit to enable short selling: $3,000. Maintain at least $2,000. Opt-in required.
Feature | Buying Power |
|---|---|
Total buying power | 1× account equity |
Maximum long position | 1× account equity |
Maximum short position | 1× account equity |
SageTrader Pro
Initial deposit: $3,000. Maintain at least $2,000.
Feature | Buying Power |
|---|---|
Total buying power | 4× account equity |
Maximum long position | 2× account equity |
Maximum short position | 1× account equity |
High-risk short position | 0.5× account equity |
2. How Buying Power Works
Buying power is allocated per position, but the total across all positions can't exceed your account's overall limit.
Example — $10,000 in a SageTrader Pro account = $40,000 total buying power (4×).
Example 1 — two longs
Position | Exposure |
|---|---|
Long A | $20,000 |
Long B | $20,000 |
Total used | $40,000 |
Example 2 — long + two shorts
Position | Exposure |
|---|---|
Long A | $20,000 |
Short B | $10,000 |
Short C | $10,000 |
Total used | $40,000 |
Note: each long is capped at 2× equity ($20,000) and each short at 1× equity ($10,000), and everything together stays inside the 4× total.
3. Margin Requirements
Buying power is how much you can put on. Margin requirements are the equity you must have behind a position — first to open it, then to keep it. There are two layers, and both are legal requirements.
3a. Initial margin — Regulation T (to OPEN a position)
Regulation T is set by the U.S. Federal Reserve and governs the minimum equity to open a position.
Regulation T requirement for a long position is 50% of the trade value.
Regulation T shorting requirements:
Stock Price | Requirement |
|---|---|
Under $5.00 | The greater of $2.50 per share or 100% of market value |
$5.00 and above | The greater of $5.00 per share or 30% of market value |
3b. Maintenance margin — FINRA Rule 4210 (to KEEP a position)
The minimum equity you must maintain to continue holding a position. Fall below it and the position may be liquidated.
Long positions
Position Type | Requirement |
|---|---|
Long positions | 25% of market value |
Short positions
Stock Price | Requirement |
|---|---|
Under $2.50 | Minimum of $2.50 per share |
$2.50 to $4.99 | 100% of market value |
$5.00 to $16.66 | Minimum of $5.00 per share |
$16.67 and above | 30% of market value |
4. Example Calculations (maintenance requirement shown)
These show the maintenance requirement for each position — not the amount needed to open it.
Position | Maintenance Requirement |
|---|---|
Long: 100 shares @ $20.00 | $500 (25% of $2,000) |
Short: 100 shares @ $1.00 | $250 ($2.50/share) |
Short: 100 shares @ $3.00 | $300 (100% of market value) |
Short: 100 shares @ $10.00 | $500 ($5.00/share) |
Short: 100 shares @ $25.00 | $750 (30% of $2,500) |
Margin requirements may change at any time based on market conditions, volatility, liquidity, concentration risk, or stock borrow availability.