What is a “maintenance requirement” on a margin account?

After you buy margin securities, FINRA rules require your brokerage firm to impose a “maintenance requirement” on your margin account. This “maintenance requirement” specifies the minimum amount of equity you must maintain in your margin account at all times.

What are house maintenance requirements?

House maintenance requirements typically range between 30% and 50%. While stocks are the security most commonly purchased in a margin account, many other securities such as mutual funds, Treasuries, corporate bonds, and options may be purchased "on margin" subject to varying purchase and maintenance requirements.

What is a 30% maintenance requirement?

A maintenance requirement of 30% means an investor borrowing on margin must have at least 30% of the total market value of the securities in their margin account at all times. So, if the securities that you borrowed money to buy are valued at $20,000, the maintenance requirement would be $6,000. What is a special maintenance requirement?