Leverage schedule

By trading on margin, you are essentially taking a loan against your holdings or equity. This means that as your account equity changes, the amount that you can borrow will also change. Our Leverage Schedule is based on the daily starting cash value of your account.

Minimum equity requirement

If your Standard Account cash balance falls below $100, your account will be liquidated from any position(s) being held, your trading permissions will be removed and your trading account will be deactivated until the balance is above $100.

Margin requirements

Margin trading allows you to borrow against your existing holdings, leveraging them to take additional positions. Capital Markets Elite Group’s rules-based margin requirements place predefined and static calculations that are applied to each position or groups of positions. For your knowledge these rules are listed below. Capital Markets Elite Group urges all clients to be mindful of these requirements when trading. Note that Capital Markets Elite Group reserves the right to modify certain margin policies to adjust for unprecedented volatility and risk in financial markets in order to see that margin accounts remain within the firm’s risk parameters.

We are focused on realistic and forward-looking approaches to risk management. We strongly encourage all clients to monitor this page for updates regarding margin policy changes.

* In the interest of the continued safety of its clients, Capital Markets Elite Group may modify certain margin policies to adjust for unprecedented volatility in financial markets. The changes will promote reduction of leverage in client portfolios and help see that clients’ accounts are appropriately capitalized.

* Accounts that fail to meet the above requirements will be liquidated in its entirety and incur a $25 margin call fee.

* All liquidations are subject to the normal commission schedule and may occur at times that are not opportune.

* Leverage magnifies the results of trading, whether favorable or unfavorable. It can result in losses greater than the amount invested. Capital Markets Elite Group urges all clients to use caution when trading on margin.

MAINTENANCE MARGIN

A Maintenance Margin of 5% is required for stocks priced at >$1. A client is always required to have at least 5% of the market value of their position as cash to hold the position. A client’s position will be liquidated to cash if they approach and breach this value

MINIMUM EQUITY REQUIREMENT

CPro accounts: If your Active Account cash balance falls below $100, your account can be liquidated from any position(s) being held, your live trading permissions will be removed and your trading account will be deactivated until the balance is above $100.

DAS and Sterling accounts: If your Active Account cash balance falls below $500, your leverage will be removed and your account will be converted to cash-only trades.

If your Active Account cash balance falls below $350, your account will be liquidated from any position(s) being held, your trading permissions will be removed and your trading account will be deactivated until the balance is above $350.

LEVERAGE SCHEDULE (BP)

By trading on margin, you are essentially taking a loan against your holdings or equity. This means that as your account equity changes, the amount that you can borrow will also change. Our Leverage Schedule is based on the daily starting cash value of your account.

MARGIN POLICIES (IM)

Additional Risk Parameters: CPro, DAS, Sterling

MAINTENANCE MARGIN

A Maintenance Margin of 5% is required for stocks priced at >$1. A client is always required to have at least 5% of the market value of their position as cash to hold the position. A client’s position will be liquidated to cash if they approach and breach this value

Selling short stocks*

With Capital Markets Elite Group, clients can borrow from our extensive list of stocks to short. A stock can either be Hard to Borrow (HTB) or Easy to Borrow (ETB). Clients who wish to short HTB stocks can utilize Capital Markets Elite Group’s Stock Locate service via the CPro, DAS Trader Pro and Sterling Trader Pro platforms to place locate requests. All short locate requests are valid for same-day trading, and new locate requests are required for each trading day. Any approved locate that is not used the same day expires at the end of the trading day.

Each locate request will be given a per share rate, dependent on the stock. For example, a locate request for 100 shares of ABC stock may receive a rate of $.05 per share. If you accept, you will be charged a $5 locate fee whether you trade the stock or not. Locate requests also incur a $25 service charge. This means for locating 100 shares ABC, you have incurred a $30 fee. You can then choose if and when to actually execute a short on the stock.  For shorts held overnight, you will incur a Short Position Overnight Fee of 0.5% the market value of the position.