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/ IDA 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 |
Top
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 |
10% |
$250,000 Loan Value |
| Silver |
15% |
$250,000 Loan Value |
| Platinum |
15% |
$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 / IDA 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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