Investors who want to buy more shares with the same amount of capital or want to use their equity for collateral on a loan. Reg T margin typically involves a strategy-based margin.

Who's it for? 

Investors with account values greater than $125,000 who want to increase the amount of capital available for investing. Unlike Reg T, portfolio margin typically involves a risk-based margin.

Futures traders or investors seeking to hedge portfolios with futures contracts to potentially offset possible security losses elsewhere in their portfolio.

Who's it for? 

Traders seeking to trade currency pairs.

Buy more shares with the same capital. 

Potential for higher returns. 

 

Use portfolio holdings as collateral for loans.

Potential for higher returns. 

Lower margin requirements compared to Reg T margin. 

Long options are marginable and can be used as collateral for other marginable positions. 

No difference between initial and maintenance margins.

Ability to control large positions with a fraction of the capital. 

Potential for higher returns. 

Ability to trade many different markets (crude oil, gold, bonds, equities, etc.)

Trading 24 hours, six days per week. 

Ability to control large positions with a fraction of the capital.

Borrowed money is subject to interest charges. 

Higher risk of loss compared to non-margined stock positions. 

Potential for margin calls if the account falls below maintenance margin levels.

Borrowed money is subject to interest charges. 

Higher risk of loss compared to non-margined stock positions.  

Potential for margin calls if the account falls below maintenance margin levels.  

Requires a larger account size to open.

High risk of loss on relatively small market movements. 

Not all futures contracts are actively traded or liquid. 

Requires a futures trading account.

High risk of loss on relatively small market movements. 

Requires a forex account.