Monday, September 26, 2022 4:04:16 PM
When you short sell a stock, the Federal Reserve Board requires that you make an initial deposit based on the net proceeds of that sale. TD Ameritrade retains the proceeds of the sale. The initial margin requirement is usually the same as the percentage of the total amount you would deposit in your account for a long margin purchase. In addition to the initial federal requirements, established maintenance requirements apply to short sales. Our maintenance requirements for short positions are as follows:
Price ----------------------- Requirements
$0.01 - $2.50 ------------ $2.50/Share
$2.51 - $5.00 ------------ 100% requirement
$5.01 - $16.67 ---------- $5.00/share
$16.68 & higher -------- 30% requirement
Please note that there is no mention of stocks in sub-penny category. Can those be shorted? Probably at a very exorbitant cost, if at all.
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