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What are your margin requirements and concentration guidelines?

Concentration guidelines are limits on the amount that can be borrowed against a security, or on the maximum dollar value of a short position.

Example: You want to buy a security with a margin requirement of 30%. TD Direct Investing will lend you 70% of the purchase price, but only up to the concentration limit of $1,500,000.

Concentration limits are generally tied to individual security margin requirements/loan rates and/or security types. It is important to understand these limits to avoid margin or concentration calls.

The amount of money you can borrow (or margin) is determined by the securities you hold. Some securities have higher margin lending rates than others. When you use margin to buy a security, you need to pay interest on that amount.

The following guidelines apply to margin accounts from TD Direct Investing. Additional requirements may apply depending upon the specific transactions and positions in your account. For more information, please review the Margin Disclosure Statement and a few examples of margin calculations below:

Margin Requirement

Concentration Guidelines

30%

$1,500,000 Loan Value

50%

$750,000 Loan Value

65%

$250,000 Loan Value

75%

$100,000 Loan Value

100%

Not Applicable

 

Canadian Listed Equity and ETF Securities

Margin Requirement

TSX listed/IIROC Approved list ($5.00+)

30%

TSX listed ($3.00+)

50%

Double Leveraged & High Yield ETF ($3.00+)

65%

TSX Venture ($3.00+)

75%

Securities under $3.00

100%

 

U.S Listed Equity and ETF Securities

Margin Requirement

Options eligible securities ($5.00+)

30%

Listed securities ($3.00+)

50%

Double Leveraged & High Yield ETF ($3.00+)

65%

Securities under $3.00

100%

OTC Listed securities

100%

Please be advised that we have reduced and/or limited the loan value and concentration guidelines on certain securities, due to their price volatility or liquidity.
Review the list.

Category of Security

Margin Requirement

Concentration Guidelines

IIROC eligible foreign indices*

50%

$750,000 Loan Value

Other Foreign Stock

100%

Not Applicable

*List of foreign market indices whose constituent securities are eligible for margin under IIROC Dealer Member Rule 100.2(f)(ii)

Category of Security

Margin Requirement

Concentration Guidelines

Mutual Funds priced over $3.00 per unit (excluding money market mutual funds)

50%

$750,000 Loan Value

High Yield Mutual Funds over $3.00 per unit (excluding money market mutual funds)

65%

$250,000 Loan Value

Mutual Funds priced under $3.00 per unit

100%

Not Applicable

Money Market Mutual Funds priced over $3.00 per unit

5%

$2,000,000 Loan Value

Note that margin is not extended for any bond with a Credit Rating below Investment Grade BBB-, Baa3, BBB (LOW)

Category of Security

Margin Requirement

Concentration Guidelines

Government of Canada

4%

$2,000,000 Loan Value

Provincial Bonds

5%

$1,000,000 Loan Value

Municipal Bonds

20%

$1,000,000 Loan Value

U.S. Treasury Bonds

4%

$2,000,000 Loan Value

Corporate Bonds

15%

$750,000 Loan Value

Investment Grade 
Convertible Bonds

15% plus (100% of excess Market Value over par with a minimum of 10% of par)

$500,000 Loan Value

All other Convertible Bonds

100% of excess Bond Market Value over the Underlying Conversion Value plus (Underlying Conversion Value x Underlying Common Stock Margin Requirement (%)

$500,000 Loan Value

Eligible Investment Grade Global Bonds

25%

$750,000 Loan Value

Mortgage-backed securities (Canadian issues only)

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

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%

$2,000,000 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

Category of Security

Margin Requirement

Concentration Guidelines

Gold/Silver/Platinum*

30%

$250,000 Loan Value

*Short Selling on precious metals is not permitted.

Category of Security

Margin Requirement

Concentration Guidelines

Listed Warrants ($3.00+)

50%

$250,000 Loan Value

Listed Warrants ($3.00+, with higher margin requirement)

75%

$25,000 Loan Value

Short Selling Canadian/U.S Listed Equity and ETF Securities $3.00+

Margin Requirement (plus 100%)

Concentration Guidelines

130%

$1,000,000 Market Value

150%

$500,000 Market Value

175%

$50,000 Market Value

 

Category of Security

Margin Requirement

Concentration Guidelines

Federal Bonds

104%

$2,000,000 Market Value

Provincial and Provincial Guaranteed Bonds

105%

$750,000 Market Value

Corporate Bonds

Not permitted

Not permitted

Listed Equities 
($2.00 - $2.99)

200% of Market Value

$50,000 Market Value

Listed Equities 
($1.50 - $1.99)

$3 per share

$50,000 Market Value

Listed Equities 
($1.00 - $1.49)

200% of Market Value

$50,000 Market Value

Listed Equities 
(Under $1)

Not permitted

Not permitted

Listed Warrants 
($3.00+)

150%

Contact an Investment Representative

Note: For security categories not listed on the above list, please contact an Investment Representative at 1-800-465-5463

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