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"Top brokerage tightens margin requirements as competitors stay steady"

"Interactive Brokers is upping its requirements for using margin in its accounts in an effort to brace for "elevated volatility” in the markets ahead of the election.

"[Interactive Brokers] believes it's appropriate to start controlling leverage in a measured fashion in advance [of the election]," the online trading platform told clients in a note.

Across Wall Street investors are bracing for uncertainty of a contested election with the possibility of no clear winner on Nov. 3. After Bush v. Gore in 2000, the S&P 500 index was down for a month before erasing the losses when a winner was decided in December."

" The company is decreasing the amount of leverage available to customers by raising the initial and maintenance margin requirements from regulation minimums 50% and 25%, respectively, to 66.7% and 33.75%. The company has 948,000 clients.

That means for someone who wants to buy $10,000 worth of stock with a margin account, it will take a $6,670 deposit to do so instead of $5,000."

https://finance.yahoo.com/news/top-brokerage-tightens-margin-trading-as-competitors-stay-steady-144034004.html