Margin Guidelines

The following guidelines apply to bXadvisors accounts in general. Additional requirements may apply depending upon the specific transactions and positions in your account. bXadvisors reserves the right to request capital in addition to the requirements below.

Please note: Before trading on margin, we recommend reviewing our Margin Disclosure Statement and other Risk information.

To open and maintain an bXadvisors margin account
Minimum equity requirements
Cash/Stock	Cash/Options/Stock	Margin/Options/Stock
No minimum	No minimum	$2,000 in marginable securities or cash (minimum required equity for leveraged transactions)

Minimum basic maintenance equity requirements:

• A threshold equity requirement of $2,000 in minimum account value applies to margin accounts engaging in leveraged transactions including short puts, short stock and stock purchases on margin.
• There is no threshold requirement for accounts engaging in spreads.
• For accounts engaging in uncovered (naked) equity call writing a minimum account value of $10,000.00 must be maintained, and for naked index call option writing a minimum account value of $50,000.00 must be maintained.
• Stocks priced $5.00 and under are not eligible for credit towards margin requirements and are not credited to buying power.
• Important: If your equity drops below the minimum required, or a call is issued for any other reason, you may be required to deposit additional funds by wire, check (sent by overnight courier), or a deposit made by other prompt method of payment.

Basic Requirements For Transactions

Long Stock Transactions	50% of the purchase price upon initiating the position 40% of the market value for maintenance 100% of the security price for stocks priced $5.00 and under
Short Stock Transactions	50% of the short value (maintenance is 40%) and $5/share requirement on Short Sales below $10/share.
Covered Call Writing	Requires a long stock position equal to the amount of exercisable calls. On a single order combination transaction, the long stock position requirement is not offset by the proceeds of the call until after the transaction.
Unsecured Short Puts & Naked Calls (Equity and Index)	25% of the underlying market price + the premium - amount out of the money OR 10% of the underlying market price (or strike price for O-T-M puts) + the premium, whichever is greater.*
Cash Secured Short Puts	100% of the exercisable value.
Short Straddles	The greater of the short put or short call requirement, plus the current premium of the leg with the lower requirement.
Debit Spreads	100% of the debit amount upon initiating the transaction.
Credit Spreads	100% of the difference between the strike prices multiplied by the number of contracts, credit from the proceeds included.
Long Butterfly	100% of the debit amount upon initiating the transaction.
*Accounts are eligible to receive the exchange minimum requirements. **Initial requirements must be met before transactions may occur. In certain cases, where transactions occur before initial requirements are met, a deposit of additional capital will be required immediately.

Basic Requirements for Portfolio Transactions

Level:	Equities*, Equity Options, Narrow-Based Indices	Broad-Based Indices
Exchange Minimums	Up/down Moves of 15%	Up/down moves of 10% 8% for SPX, OEX and DJX indices
House Aggressive	Up/down Moves of 18% High Volatility Stocks 50%	Up/down moves of 10%
House Standard	Up/down Moves of 22% High Volatility Stocks 50%	Up/down moves of 12%
House Increased	Up/down Moves of 25% High Volatility Stocks 50%	Up/down moves of 15%
*Stocks under $5 and non-national exchange securities: ineligible for portfolio margin. Minimum Option Requirement: 75% of net option value. 100% of net option value for options under $1.00. Bonds and Mutual Funds: Margin requirement based on Regulation T guidelines.

Trading Level Basic Definitions

	-1	0	1	2	3	4	5
Trading Disabled	x
Trading Stocks / Bonds / Mutual Funds		x	x	x	x	x	x
Covered Call Writing / Short Stock Sales			x	x	x	x	x
Buying Calls and Puts / Covered Put Writing				x	x	x	x
Debit Spreads					x	x	x
Credit Spreads / Equity Put Writing						x	x
Naked Equity Call Writing / Naked Index Put & Call Writing							x

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