Table of contents
Margin Accounts
- What are the benefits and risks of margin account?
- Margin Requirement
- Margin Requirement Calculation
- Trade Calculation Based on Account Available Margin
- Margin Requirement in Options Trading
- Concentration Guideline
- Concentration Exception Request
- Margin Shortfall
Cash / Registered Accounts
- What are the benefits and risks of Cash / Registered Accounts?
- Important Reminders on Account Settlement
- Maximum Trade Size in Cash Accounts
- Maximum Trade Size in Registered Accounts
- Lending in Cash / Registered Accounts
- Trade Settlement
- Automatic HRSA Sweep & Redemption Service in Registered Account
Online Trading Learning Centre

Access educational articles covering the basic investing principles and strategies to guide your investment journey.
Margin Accounts
What are the benefits and risks of margin account?
Benefits
- A margin account is a brokerage account which allows you to borrow money against the investments in your account at a competitive interest rate. Please click here for more information.
- You can leverage the account by using excess margin to buy additional investments.
- You can transfer excess margin out of the account for personal purposes; a readily available line of credit.
- You can pay down the outstanding balance at any time.
Risks
- The amount of money you can borrow is determined by securities you hold in the portfolio. Margin rates vary by security, and the minimum margin requirements are set by the Investment Industry Regulatory Organization of Canada(IIROC). HIDC reserves the right to impose more stringent margin requirements at any time without prior notice and it could often take effect immediately. You must ensure that you are aware of the margin rate of the securities in which you are borrowing funds. Please click here to view the margin rates.
- The fluctuations of the values of securities can affect your account’s available margin. Unfavorable market conditions may result in negative margin balances within your account (“margin deficiency”). You must closely monitor your account to maintain a positive margin balance. Please click here for more information on margin account deficiencies.
- If there is margin deficiency in your account, HSBC InvestDirect will attempt to notify you of the margin call on a best-effort basis. You are required to take action to cover the shortfall within the provided deadline - by deposit (cash or margin-eligible securities), by selling sufficient securities, or buy back sufficient short positions to avoid the forced sale or buy-back of those securities in your account.
- In accordance with the Margin Account Terms and Conditions, HSBC InvestDirect reserves the right to take necessary actions it deems desirable for its protection, including (without the necessity of a margin call) the immediate sale or buy back of securities to cover the current margin deficiency without prior notice. Margin sales or buy-backs to correct a margin shortfall will be charged at full commission fees (Online commission fee does not apply) and handling fee of $15.
Margin Requirement
Exchange Listed Long Positions | Margin Requirement | Maximum Loan Value |
---|---|---|
North American Equities | ||
Options eligible securities & IIROC List of Securities Eligible for Reduced Margin (LSERM) ($5.00 & above) | 30% | $300,000 |
Exchange Listed Securities ($3.00 & above) | 50% | $150,000 |
Double Leveraged ETF ($3.00 & above) | 60% | $200,000 |
SPACs Options eligible ($3.00 & above) | 60% | $200,000 |
SPAC’s Non Options eligible ($3.00 & above) | 60% | $100,000 |
All Securities listed on TSX Venture | 100% | - |
Securities under $3.00 | 100% | - |
Triple Leveraged ETF | 100% | - |
Global Equities | ||
Marketplace on IIROC List of Recognized Exchanges | 50% | $150,000 |
Exchange Listed Long Positions | North American Equities |
---|---|
Margin Requirement | |
Maximum Loan Value | |
Exchange Listed Long Positions | Options eligible securities & IIROC List of Securities Eligible for Reduced Margin (LSERM) ($5.00 & above) |
Margin Requirement | 30% |
Maximum Loan Value | $300,000 |
Exchange Listed Long Positions | Exchange Listed Securities ($3.00 & above) |
Margin Requirement | 50% |
Maximum Loan Value | $150,000 |
Exchange Listed Long Positions | Double Leveraged ETF ($3.00 & above) |
Margin Requirement | 60% |
Maximum Loan Value | $200,000 |
Exchange Listed Long Positions | SPACs Options eligible ($3.00 & above) |
Margin Requirement | 60% |
Maximum Loan Value | $200,000 |
Exchange Listed Long Positions | SPAC’s Non Options eligible ($3.00 & above) |
Margin Requirement | 60% |
Maximum Loan Value | $100,000 |
Exchange Listed Long Positions | All Securities listed on TSX Venture |
Margin Requirement | 100% |
Maximum Loan Value | - |
Exchange Listed Long Positions | Securities under $3.00 |
Margin Requirement | 100% |
Maximum Loan Value | - |
Exchange Listed Long Positions | Triple Leveraged ETF |
Margin Requirement | 100% |
Maximum Loan Value | - |
Exchange Listed Long Positions | Global Equities |
Margin Requirement | |
Maximum Loan Value | |
Exchange Listed Long Positions | Marketplace on IIROC List of Recognized Exchanges |
Margin Requirement | 50% |
Maximum Loan Value | $150,000 |
Exchange Listed Short Positions | Margin Requirement | Maximum Loan Value |
---|---|---|
Options eligible securities & IIROC List of Securities Eligible for Reduced Margin (LSERM) ( $5.00 & above) | 130% | $300,000 |
SPACs Option eligible ($3.00 & above) | 160% | $200,000 |
SPACs Non Option eligible ($3.00 & above) | 160% | $100,000 |
Other Securities ($3.00 & above) | 150% | $150,000 |
Securities under $3.00 | 200% | - |
Exchange Listed Short Positions | Options eligible securities & IIROC List of Securities Eligible for Reduced Margin (LSERM) ( $5.00 & above) |
---|---|
Margin Requirement | 130% |
Maximum Loan Value | $300,000 |
Exchange Listed Short Positions | SPACs Option eligible ($3.00 & above) |
Margin Requirement | 160% |
Maximum Loan Value | $200,000 |
Exchange Listed Short Positions | SPACs Non Option eligible ($3.00 & above) |
Margin Requirement | 160% |
Maximum Loan Value | $100,000 |
Exchange Listed Short Positions | Other Securities ($3.00 & above) |
Margin Requirement | 150% |
Maximum Loan Value | $150,000 |
Exchange Listed Short Positions | Securities under $3.00 |
Margin Requirement | 200% |
Maximum Loan Value | - |
North American Options | Margin Requirement | Maximum Loan Value |
Equity Options | ||
---|---|---|
Long Call and Put Options | 100% options premium | - |
Naked Call Options | (1) 100% options premium + (2) margin requirement of underlying security – any out of the money value (subject to minimum of 5% market value of underlying security) |
$300,000 |
Naked Put Options | (1) 100% options premium + (2) margin requirement of underlying security – any out of the money value (subject to minimum of 5% aggregated exercise value of the option) |
$300,000 |
Index Options | ||
CAD/US Indices (Broad Based) | (1) 100% options premium + (2) 15% of market value of index – any out of the money value (subject to minimum of 10% market value of index) |
$300,000 |
CAD/US Indices (Narrow Based) | (1) 100% options premium + (2) 20% of market value of index – any out of the money value (subject to minimum of 10% market value of index) |
$300,000 |
North American Options | Equity Options |
---|---|
Margin Requirement | |
Maximum Loan Value | |
North American Options | Long Call and Put Options |
Margin Requirement | 100% options premium |
Maximum Loan Value | - |
North American Options | Naked Call Options |
Margin Requirement |
(1) 100% options premium + (2) margin requirement of underlying security – any out of the money value (subject to minimum of 5% market value of underlying security) |
Maximum Loan Value | $300,000 |
North American Options | Naked Put Options |
Margin Requirement |
(1) 100% options premium + (2) margin requirement of underlying security – any out of the money value (subject to minimum of 5% aggregated exercise value of the option) |
Maximum Loan Value | $300,000 |
North American Options | Index Options |
Margin Requirement | |
Maximum Loan Value | |
North American Options | CAD/US Indices (Broad Based) |
Margin Requirement |
(1) 100% options premium + (2) 15% of market value of index – any out of the money value (subject to minimum of 10% market value of index) |
Maximum Loan Value | $300,000 |
North American Options | CAD/US Indices (Narrow Based) |
Margin Requirement |
(1) 100% options premium + (2) 20% of market value of index – any out of the money value (subject to minimum of 10% market value of index) |
Maximum Loan Value | $300,000 |
Please click here for more information on the Maximum Loan Value (Concentration Limits).
Canadian Mutual Funds | Margin Requirement | Maximum Loan Value |
---|---|---|
Money Market Fund with Net Asset Value over $3.00 per unit | 5% | - |
Marginable Canadian and US High Rate Savings Account** | 5% | - |
Net Asset Value over $3.00 per unit | 50% | $200,000 |
Other Mutual Funds and Hedge Funds | 100% | - |
Canadian Mutual Funds | Money Market Fund with Net Asset Value over $3.00 per unit |
---|---|
Margin Requirement | 5% |
Maximum Loan Value | - |
Canadian Mutual Funds | Marginable Canadian and US High Rate Savings Account** |
Margin Requirement | 5% |
Maximum Loan Value | - |
Canadian Mutual Funds | Net Asset Value over $3.00 per unit |
Margin Requirement | 50% |
Maximum Loan Value | $200,000 |
Canadian Mutual Funds | Other Mutual Funds and Hedge Funds |
Margin Requirement | 100% |
Maximum Loan Value | - |
**Please contact a HIDC Investment Representative for the list of marginable HISA**
Precious Metals Certificates* | Margin Requirement | Maximum Loan Value |
---|---|---|
Gold, Silver, Platinum | 20% | $300,000 |
Precious Metals Certificates* | Gold, Silver, Platinum |
---|---|
Margin Requirement | 20% |
Maximum Loan Value | $300,000 |
*certificates issued by Canadian chartered banks and trust companies authorized to do business in Canada evidencing an interest in precious metals
Guaranteed Investment Certificate | Margin Requirement | Maximum Loan Value |
---|---|---|
50% |
Guaranteed Investment Certificate | |
---|---|
Margin Requirement | 50% |
Maximum Loan Value |
6. Bonds, Debentures, Tresury Bills and Notes
Margin rates are determined based upon the creditworthiness of the issuer and the term risk of the debt security.
7. Government Bonds
Maturity Date | Margin Requirement |
---|---|
Within 1 year | 1% x Days to Maturity / 365 |
Between 1-3 years | 1% |
Between 3-7 years | 2% |
Over 7 years | 4% |
Maturity Date | Within 1 year |
---|---|
Margin Requirement | 1% x Days to Maturity / 365 |
Maturity Date | Between 1-3 years |
Margin Requirement | 1% |
Maturity Date | Between 3-7 years |
Margin Requirement | 2% |
Maturity Date | Over 7 years |
Margin Requirement | 4% |
Maturity Date | Margin Requirement |
---|---|
Within 1 year | 2% x Days to Maturity / 365 |
Between 1-3 years | 3% |
Between 3-7 years | 4% |
Over 7 years | 5% |
Maturity Date | Within 1 year |
---|---|
Margin Requirement | 2% x Days to Maturity / 365 |
Maturity Date | Between 1-3 years |
Margin Requirement | 3% |
Maturity Date | Between 3-7 years |
Margin Requirement | 4% |
Maturity Date | Over 7 years |
Margin Requirement | 5% |
Maturity Date | Margin Requirement |
---|---|
Within 1 year | 3% x Days to Maturity / 365 |
Over 1 year | 5% |
Maturity Date | Within 1 year |
---|---|
Margin Requirement | 3% x Days to Maturity / 365 |
Maturity Date | Over 1 year |
Margin Requirement | 5% |
Maturity Date | Margin Requirement |
---|---|
Within 1 year | 3% x Days to Maturity / 365 |
Between 1-3 years | 6% |
Between 3-7 years | 7% |
Over 7 years | 10% |
Maturity Date | Within 1 year |
---|---|
Margin Requirement | 3% x Days to Maturity / 365 |
Maturity Date | Between 1-3 years |
Margin Requirement | 6% |
Maturity Date | Between 3-7 years |
Margin Requirement | 7% |
Maturity Date | Over 7 years |
Margin Requirement | 10% |
Maturity Date | Margin Requirement |
---|---|
Within 1 year | 3% x Days to Maturity / 365 |
Between 1-3 years | 6% |
Between 3-7 years | 7% |
Over 7 years | 10% |
Maturity Date | Within 1 year |
---|---|
Margin Requirement | 3% x Days to Maturity / 365 |
Maturity Date | Between 1-3 years |
Margin Requirement | 6% |
Maturity Date | Between 3-7 years |
Margin Requirement | 7% |
Maturity Date | Over 7 years |
Margin Requirement | 10% |
Maturity Date | Margin Requirement |
---|---|
Within 1 year | 2% x Days to Maturity / 365 |
Between 1-3 years | 6% |
Between 3-7 years | 7% |
Over 7 years | 10% |
Maturity Date | Within 1 year |
---|---|
Margin Requirement | 2% x Days to Maturity / 365 |
Maturity Date | Between 1-3 years |
Margin Requirement | 6% |
Maturity Date | Between 3-7 years |
Margin Requirement | 7% |
Maturity Date | Over 7 years |
Margin Requirement | 10% |
Maturity Date | Margin Requirement |
---|---|
Within 1 year | 2% x Days to Maturity / 365 |
Between 1-3 years | 6% |
Between 3-7 years | 7% |
Over 7 years | 10% |
Maturity Date | Within 1 year |
---|---|
Margin Requirement | 2% x Days to Maturity / 365 |
Maturity Date | Between 1-3 years |
Margin Requirement | 6% |
Maturity Date | Between 3-7 years |
Margin Requirement | 7% |
Maturity Date | Over 7 years |
Margin Requirement | 10% |
Any commercial, corporate bonds, debentures, notes with market value of 50% or less of par value with a low credit rating will be margined at 50% subject to the minimum bond credit rating as below:
- **All Bonds that are rated non-investment grade and are rated below the following agency ratings will have 100% margin requirement**.
BBB(Low) ----------- DBRS
B++(Low) ------------ CBRS
Baa3 ---------------- Moody’s
BBB- ----------------- S& P
Notes:
- Convertible Bonds, when a credit rating for the debt issuer is not available, the margin requirement for the convertible bond will be the same as the underlying security’s margin requirement.
12. Mortgage Backed Securities
The margin rate of these securities is the rate applicable to the government guaranteeing the mortgages plus an additional 25%.
Margin Requirement Calculation
Long stocks | Short sell |
---|---|
BUY 500 Shares at $60. Margin Requirement=30% | SHORT SELL 500 Shares at $60. Margin requirement=30% plus 100% |
#of shares * price * margin rate = 500*$60*30% = $9,000 |
#of shares * price * margin rate - sale proceeds = 500*$60.00*130% -$30,000 = $9,000 |
Long stocks | BUY 500 Shares at $60. Margin Requirement=30% |
---|---|
Short sell | SHORT SELL 500 Shares at $60. Margin requirement=30% plus 100% |
Long stocks |
#of shares * price * margin rate = 500*$60*30% = $9,000 |
Short sell |
#of shares * price * margin rate - sale proceeds = 500*$60.00*130% -$30,000 = $9,000 |
Trade Calculation Based on Account Available Margin
Long stocks | Short sell |
---|---|
Margin available:$20,000 Stock Price: $60 Margin Requirement= 30% |
Margin available:$20,000 Stock Price: $60 Margin Requirement= 130% |
Margin available / price / margin rate
|
Margin available / price / margin rate = $20,000/$60/30% = 1,111 shares Note: Margin requirement on this Short position is 130%. At the time of trade, 100% is the sales proceeds from the short sale transaction and an additional 30% margin is required at the time of trade. |
Long stocks |
Margin available:$20,000 Stock Price: $60 Margin Requirement= 30% |
---|---|
Short sell |
Margin available:$20,000 Stock Price: $60 Margin Requirement= 130% |
Long stocks |
Margin available / price / margin rate
|
Short sell |
Margin available / price / margin rate = $20,000/$60/30% = 1,111 shares Note: Margin requirement on this Short position is 130%. At the time of trade, 100% is the sales proceeds from the short sale transaction and an additional 30% margin is required at the time of trade. |
Margin Requirement in Options Trading
Please click here for the options margin requirement chart.
1. LONG OPTION POSITION
You buy to open 10 contracts of Stock A’s PUT, strike price $50, trading at $1.50.
100% of options premium
= # of contracts * options price * 100 shares
= 10 * $1.50 * 100
= 1,500
2. DEBIT SPREAD
Stock A is trading at $44.
Buy to open 10 contracts of Stock A’s CALL, strike price $50, trading at $1.50
Sell to open 10 contracts of Stock A’s CALL, strike price $55, trading at $0.50.
Both positions have the same expiry date.
Premium paid for long CALL - Premium received for short CALL
= (10*$1.50*100) - (10*$0.50*100)
= 1,000
3. CREDIT SPREAD
Stock A is trading at $44.
Buy to open 10 contracts of Stock A’s CALL, strike price $55, trading at $0.50
Sell to open 10 contracts of Stock A’s CALL, strike price $50, trading at $1.50.
Both positions have the same expiry date.
Difference between strike price
- Premium received for short CALL
+ Premium paid for long CALL
= (55-50)*10*100 - (10*$1.50*100) + (10*$0.50*100)
= 4,000
4. NAKED CALL OPTIONS
Stock A is trading at $44.
Sell to open 10 contracts of Stock A’s CALL, strike price $50, trading at $1.50.
(1) 100% options premium
+ (2) margin requirement of underlying security – any out of the money value (subject to minimum of 5% market value of underlying security)
= (10*$1.50*100) + (44*10*100*30%) - (50-44)*10*100
= 8,700
5. NAKED PUT OPTIONS
Stock A is trading at $62.
Sell to open 30 contracts of Stock A’s PUT, strike price $50, trading at $0.20.
(1) 100% options premium
+ (2) margin requirement of underlying security – any out of the money value (subject to minimum of 5% aggregated exercise value of the option)
= (30*$0.20*100) + (62*30*100*30%) - (62-50)*30*100
= 20,400
Concentration Guideline
In addition to the minimum margin requirements, HSBC InvestDirect Credit Policy has Concentration limits which is the maximum amount that can be borrowed against a security, or the maximum dollar value of a short position, or the maximum number of contracts you can write on CALL and PUT options. Each security has its own concentration limit and the limits are generally tied to the margin requirements of its corresponding security types. It is important to understand these limits to avoid margin or concentration calls.
Type of Transaction | Long stocks | Short Sell | Naked Options |
---|---|---|---|
STOCK A (option-eligible) Concentration limit = $300,000 |
BUY 12,000 shares at $60 Margin Requirement =30% |
SHORT SELL 2,000 Shares at $280. Margin requirement =130% |
SHORT 120 contracts of PUT options with price of underlying at $45. Margin requirement= 30% |
Loan extended by HIDC: | 12,000*$60*70% =$504,000 |
2,000*$280*70% =$392,000 |
12,000*$45*70% =$378,000 |
Margin required for client: Value of trade – loan extended |
(12,000*$60)-$300,000 =$420,000 |
(2,000*$280)-$300,000 =$260,000 |
(12,000*$45)-$300,000 =$240,000 |
Type of Transaction |
STOCK A (option-eligible) Concentration limit = $300,000 |
---|---|
Long stocks |
BUY 12,000 shares at $60 Margin Requirement =30% |
Short Sell |
SHORT SELL 2,000 Shares at $280. Margin requirement =130% |
Naked Options | SHORT 120 contracts of PUT options with price of underlying at $45. Margin requirement= 30% |
Type of Transaction | Loan extended by HIDC: |
Long stocks |
12,000*$60*70% =$504,000 |
Short Sell |
2,000*$280*70% =$392,000 |
Naked Options |
12,000*$45*70% =$378,000 |
Type of Transaction |
Margin required for client: Value of trade – loan extended |
Long stocks |
(12,000*$60)-$300,000 =$420,000 |
Short Sell |
(2,000*$280)-$300,000 =$260,000 |
Naked Options |
(12,000*$45)-$300,000 =$240,000 |
Type of Transaction | Long stocks | Short Sell | Naked Options |
---|---|---|---|
STOCK A (option-eligible) |
Margin available: $150,000 |
Margin available: $150,000 |
Margin available: $150,000 |
Number of shares or contracts marginable: | $300,000/70%/$60 =7,142 shares |
$300,000/70%/$280 =1,530 shares |
$300,000/70%/$45/100 shares =95 contracts |
How many shares or contracts you can trade with the margin available: |
Marginable: 7,142 shares *$60*30% =$128,556 ($150,000-$128,556)/$60 =357 shares. |
Marginable: 1,530 shares*$280*30% =$128,520. ($150,000-$128,520)/$280 =76 shares |
95 contracts *$45*30%*100 = $128,250 (150,000-$128,250)/$45/100 =4 contracts |
Type of Transaction |
STOCK A (option-eligible) |
---|---|
Long stocks |
Margin available: $150,000 |
Short Sell |
Margin available: $150,000 |
Naked Options | Margin available: $150,000 |
Type of Transaction | Number of shares or contracts marginable: |
Long stocks |
$300,000/70%/$60 =7,142 shares |
Short Sell |
$300,000/70%/$280 =1,530 shares |
Naked Options |
$300,000/70%/$45/100 shares =95 contracts |
Type of Transaction |
How many shares or contracts you can trade with the margin available: |
Long stocks |
Marginable: 7,142 shares *$60*30% =$128,556 ($150,000-$128,556)/$60 =357 shares. |
Short Sell |
Marginable: 1,530 shares*$280*30% =$128,520. ($150,000-$128,520)/$280 =76 shares |
Naked Options |
95 contracts *$45*30%*100 = $128,250 (150,000-$128,250)/$45/100 =4 contracts |
Concentration Exception Request
An increase to Maximum Loan value extended may be granted on an exceptional basis, but only within IIROC regulatory margin requirements. Please submit a request by email to investdirect@hsbc.ca, or contact us at 1.800.760.1180.
Please include the following information on your request:
ACCOUNT #:
NAME:
EXTENDED LOAN REQUEST ON THE FOLLOWING STOCKS:
INCREASE DEBIT LIMIT (ACCOUNT DEFAULT LIMIT $750,000):
Margin Shortfall
You will receive a “Margin Call” message in your online account. You are required to take action to cover the shortfall within the provided deadline - by deposit (cash or margin-eligible securities), or sell sufficient securities, or buy back sufficient short positions to avoid the forced sale or buy-back of those securities in your account. HSBC InvestDirect reserves the right to take necessary actions to protect our financial interests including the immediate sale or buy back of securities to cover the current margin deficiency without prior notice.
In accordance with the Margin Account Terms and Conditions, HSBC InvestDirect reserves the right to take necessary actions it deems desirable for its protection, including (without the necessity of a margin call) the immediate sale or buy back of securities to cover the current margin deficiency without prior notice.
Margin sales or buy-backs to correct a margin shortfall will be charged at full commission fees (Online commission fee does not apply) and handling fee of $15.
Cash / Registered Accounts
What are the benefits and risks of Cash / Registered Accounts?
Benefits
- A Registered account is a brokerage account which allows you to invest your retirement plan account money.
- You can have investment opportunities through a variety of investment vehicle, including stocks, bonds, mutual funds and more.
- You can invest and trade in 30 domestic and international markets.
Risks
- In accordance with the General Terms and Conditions, account delinquency or stock oversold are prohibited in Cash and Registered accounts.
- According to CRA, debit in registered plan is prohibited, including debit caused by RIF / LIF payments.
- Cash accounts can be restricted to “Cash up front” if marked 3 times as delinquent, meaning funds must be available in the account prior to placing a buy order.
- Incorrect trade settlement, or bank holds on funds may result in an account delinquency, please ensure the right settlement instructions are chosen at the time of trade, and ensure funds are available for settlement in a linked bank account.
- If your account goes in delinquency or stocks are oversold, we will attempt to notify you of the debit call or oversell on best-effort basis. You are required to take action to cover the shortfall within the provided deadline – by cash deposit or buy-back short position to avoid the forced sale of securities or forced buy-back in your account. HSBC InvestDirect reserves the right to take necessary actions to protect our financial interests including the immediate sale or buy back of securities to cover the current deficiency without prior notice.
- Missing booking an exchange rate through the Automatic HRSA Sweep & Redemption Service or insufficient USD High Interest Saving account / money market fund may result in a delinquency in a Registered account.
- We reserve the right to decide which security to sell or buy back in order to protect our financial interests. All forced sale or buy-back will be charged at full commission fees (Online commission fee does not apply) and handling fee of $15.
Important Reminders on Account Settlement
Do
- Have sufficient fund for the purchase on settlement date
(T+2 for stocks; T+1 for options). - Have money market fund/HRSA sold ready for the purchase settlement.
- Cover the RIF/LIF payment debit on time.
- Leave FX cushion when making purchase with different currency settlement.
- Choose the appropriate trade settlement instruction.
- Make sure to have cleared funds in the bank account for transfer in to trading account.
- Sign up for the Automatic HRSA Sweep & Redemption Service for the convenience of USD$ purchases in a Registered account.
Do not
- Leave the account delinquent or in a debit at any time.
- Transfer in funds/ make RSP contributions without cleared funds at the linked bank account.
- Sell to cover the purchase on different settlement date.
- Miss booking exchange rates through the Automatic HRSA Sweep & Redemption Service for USD$ purchase in a Registered account.
- Invest all available funds in RIF or LIF account in Non-cashable/redeemable GIC.
- Oversell your holdings creating a short position.
- Get marked as delinquent 3 times, as Cash Up Front restrictions will be imposed on your account.
Maximum Trade Size in Cash Accounts
Cash account - The maximum trade size purchase equals to the total equity in the cash trading account excluding venture stock or non-marginable stock holdings.
Cash account with Cash Up Front restriction - The maximum trade size purchase equals to your available funds and money market funds/HRSAs minus any open buy orders in the cash trading account, including cleared fund deposit from your linked up bank account.
Maximum Trade Size in Registered Accounts
The maximum trade size purchase equals to your available funds and money market funds/HRSAs minus any open buy orders in the Registered trading account.
Lending in Cash / Registered Accounts
Lending in Cash / Registered Accounts are not allowed. Funds must be available for the settlement of trades in Cash and Registered Accounts.
Trade Settlement
In general, stocks settle in T+2, i.e. trade date plus two business days; options settle in T+1, i.e. trade date plus one business day. Settling trades by selling securities on the next day or later days to cover the offsetting debit are not allowed in Cash accounts or Registered accounts.
Automatic HRSA Sweep & Redemption Service in Registered Account
This service is intended for USD currency trades only in Registered accounts. Please ensure you have enrolled for this service and designated your HRSA and have sufficient HRSA for your USD currency trades.
Access the form here.
1 North American securities prices are in the currency of the marketplace on which they trade (e.g. TSX listed security in Canadian dollars).
2 Maximum Loan Value amount is in the currency of the account type (e.g. Canadian account = Canadian dollars).
3 Margin calculations are for illustrative purposes only
4 Sample calculations have not included applicable commissions and fees
5 The firm reserves the right to change the margin requirement at any time without prior notice and the changes often take effect immediately, as indicated in the Margin Account Terms and Conditions.