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Section 5113 describes the calculations for determining margin requirements for long and short positions in client accounts. It applies to Rules 5200 through 5900.
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Client accounts - loan value of long positions
The loan value of a long position is generally calculated according to the formula:
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[100% - applicable margin rate %] x positive market value of the security, or
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by any alternative method specified in the IIROC requirements.
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Client accounts - loan value of short positions
The loan value of a short client position is generally calculated according to the formula:
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[100% + applicable margin rate %] x negative market value of security, or
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by any alternative method specified in the IIROC requirements.
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Net loan value and status of a client account
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The positive and negative loan values in a client margin account must be totalled.
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If the total loan value in a client account results in a net positive loan value, the client may have a debit cash balance no larger than the positive loan value amount for the account to be in good standing.
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If the total loan value in a client account results in a net negative loan value, the cash balance in the margin account must be a credit equal to or larger than the net negative loan value for the account to be in good standing.
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If a client does not bring its account into good standing by depositing the required amount of margin into its account, subsection 5111(2) applies.
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There is no history log for this rule.