NEW YORK--(BUSINESS WIRE)--E*TRADE Financial Corporation (NASDAQ: ETFC) today announced that E*TRADE Securities LLC now offers qualified customers access to portfolio margin accounts – retail brokerage accounts that calculate margin requirements using risk-based methodology, potentially increasing buying power and trading flexibility for well-diversified investors who use options to hedge risk.
“Portfolio margin is geared toward sophisticated investors who understand risk and want more flexibility in how they manage risk and leverage capital,” said Michael Curcio, President, E*TRADE Securities. “Through portfolio margin, investors have access to potentially lower margin requirements, thereby unlocking capital and maximizing their trading potential.”
E*TRADE’s portfolio margin accounts are available to customers who meet specific eligibility criteria, including:
- $100,000 minimum equity requirement (maintained at all times)
- Level 4 options trading approval
Portfolio margin requirements are based on the net risk to a given portfolio for theoretical changes in market conditions, rather than using position-level formulas and pre-defined options strategies, such as spreads.
An added benefit to E*TRADE’s portfolio margin accounts is that no additional "up front" capital is required on top of maintenance requirements, as the initial and maintenance margin requirements are the same.
For investors interested in learning more about portfolio margin, E*TRADE will sponsor a live webcast, “Introduction to Portfolio Margin,” hosted by the CBOE on Wednesday, September 14th, from 4:15 to 5:15 p.m. ET. Click here to register. Learn more about portfolio margin here.
About E*TRADE Financial
The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. More information is available at www.etrade.com.
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