Your concentration percentage is the ratio of a single position's absolute value to the total absolute value of all marginable equity positions in your account. A higher percentage indicates a more concentrated (less diversified) account.
Formula: % of Net Absolute Value = Absolute Value of Single Marginable Position ÷ Sum of Absolute Values of All Marginable Equity Positions
The higher your concentration percentage, the higher the maintenance requirement applied to that position. See the table below for the full breakdown.
These are the general concentration thresholds - certain securities may be subject to a higher override percentage:
Percentage Threshold | Concentration Requirement |
≥ 25% | 35% |
≥ 35% | 40% |
≥ 50% | 50% |