Guaranty amounts for Trader Workstation

BULBROKERS hereby sets the following amounts of guarantee (margin) on the various types of instruments:

AMERICAN STOCKS

CANADIAN STOCKS

NON-US/NON-CANADIAN OPTIONS MARGIN REQUIREMENTS
Margin requirements are determined by risk based portfolio analysis models specified by each exchange. For specific details, visit the specific exchange site in question.

US STOCK AND INDEX OPTIONS EQUITY REQUIREMENTS

CANADIAN STOCK AND INDEX OPTIONS REQUIREMENTS

NON-US/NON-CANADIAN OPTIONS MARGIN REQUIREMENTS

Margin requirements are determined by risk based portfolio analysis models specified by each exchange. For specific details, visit the specific exchange site in question.


FUTURES MAINTENANCE AND OVERNIGHT MARGIN REQUIREMENTS:

4. Margin Overview

4.1.  New Position Margin Calculation: Upon submission of an order request, a check is made against real-time available funds. If available funds including the order request >=0 the order is submitted, if it is negative the order is rejected. The following calculations are used to determine available funds:

Securities available funds = Securities equity with loan value - Securities initial margin requirement.

In addition, you are required to have a minimum of $2,000 or USD equivalent of securities equity with loan value or commodities net liquidation value to open a new position.

4.2. Maintenance Margin Calculations: On a real-time basis, excess liquidity is checked to ensure that it's >=0, if it is negative the account is subject to liquidation on a real-time basis. The following calculations are used to determine excess liquidity:

Securities excess liquidity = Securities equity with loan value - Securities maintenance margin requirements.

4.3. Reg T End of Day Margin Calculations

At the end of each US trading day (15:50-16:00ET), a Special Memorandum Account (SMA) is checked to ensure that it's > =0, if it is negative the account is subject to liquidation. In addition, no cash withdrawal will be allowed that causes SMA to go negative on a real-time basis. SMA is calculated for all securities (stocks and options) regardless of country of trading as follows:

Special Memorandum Account=:

• Maximum ((Equity with Loan Value - initial margin requirements*).
• (Prior Day SMA +/- change in day's cash +/- initial margin requirements**).

* Calculated at the end of the day under US margin rules.
** Calculated at the time of the trade under US margin rules.

4.4. Margin Models
Margin requirements are calculated either on a rules basis or a risk basis.

For rule based margin systems, predefined, static calculations are applied to each position or predefined groups of positions (“strategies”). The following instruments are margined using rule based margins:

4.4.1. US stocks, index options, and stock options;
4.4.2. Canadian stocks, index options, and stock options;

For risk based margin systems, exchanges consider the maximum one day risk on all the positions in a complete portfolio, or subportfolio together (for example, a future and all the options delivering that future). The general calculation method is as follows:

4.4.3. Exchange assigns scanning ranges for price movements, volatility shifts, and other risk directions. The ranges are based on observations of historical performance of the underlying instrument.
4.4.4. Every instrument (stock/option/future) is valued over the ranges of price, volatility, etc. The resultant value matrix is distributed to Bulbrokers on a daily basis.
4.4.5. Bulbrokers values the (sub)portfolio over the matrix and determines the worst case scenario loss using standard models approved by the exchange.
4.4.6. The margin is calculated as the difference between the current portfolio value and the worst case value.

Margin requirements for each underlying are listed on the appropriate exchange site for the contract.

5. Universal Account
Although the Universal Account should be viewed as a single account for trading and account monitoring purposes, for regulatory and segregation purposes, there exists a separate securities and commodities account. If there is a margin deficit in either your securities or commodities account, cash will be immediately transferred to protect the margin deficit. At the end of each day, any excess cash in your commodities account will be swept to your securities account.

6. Overview of Pattern Day Trading

Pattern Day Trader is someone who effects 4 or more Day Trades within a 5 business day period. A trader who executes more than 4 day trades in this time is deemed to be exhibiting a ‘pattern’ of day trading and is thereafter subject to the PDT restrictions. In order to day trade, the account must have at least $25,000 in equity (or USD equivalent). If an account with less than $25,000 is flagged as a day trading account, the account must be frozen to prevent additional trades. If the account is flagged as a PDT account, and the value subsequently falls below the SEC required $25,000 minimum (intraday included), the client must deposit funds to bring the account’s equity up to the SEC required minimum of $25,000 or request a broker to remove the PDT designation if the client acknowledges that s/he does not intend to engage in day trading strategies, and requests that the PDT designation be removed. Once the PDT flag is removed, the customer will then be allowed 3 day trades every 5-business days. If an account gets re-flagged as a PDT account after the reset, the customer then has to deposit funds to bring the account’s equity up to the SEC required minimum of $25,000 (or USD equivalent). Clients, who have never been assessed as Pattern Day Traders, are obliged to follow the standard margin requirements.

Please note that exercise and transfer of options are considered to be a Day Trade, while Futures contracts and Futures Options are not included in the SEC Day Trade rule.

7.Covered Calls and Puts

Short an option with an equity position held to cover full exercise upon assignment of the option contract.

8. Call/Put Spread
A long and short position of equal number of calls/puts on the same underlying (and same multiplier) if the long position expires on or after the short position.

9. Collar
Long put and long underlying with short call. Put and call must have same expiration date, same underlying (and same multiplier), and put exercise price must be lower than call exercise price.

10. Long/Short Call and Put
Buy/Sell a call and a put.

11. Long Butterfly
Two short options of the same series (class, multiplier, strike price, expiration) offset by one long option of the same type (put or call) with a higher strike price and one long option of the same type with a lower strike price. All component options must have the same expiration, same underlying, and intervals between exercise prices must be equal.

12. Short Butterfly Put/Call
Two long put/call options of the same series offset by one short put/call option with a higher strike price and one short put/call option with a lower strike price. All component options must have the same expiration, same underlying, and intervals between exercise prices must be equal.

13. Long/Short Box Spread
Long call and short put with the same exercise price (“buy side”) coupled with a long put and short call with the same exercise price (“sell side”). Buy side exercise price is lower/higher than the sell side exercise price. All component options must have the same expiration, and underlying (multiplier).

14. Conversion
Long put and long underlying with short call. Put and call must have the same expiration date, underlying (multiplier), and exercise price.

15. Reverse Conversion
Long call and short underlying with short put. Put and call must have same expiration date, underlying (multiplier), and exercise price.

16. Protective Put/Call
Long Put/Call and Long/Short Underlying.

17. Central European Time (CET)
Bulgarian time minus 1 hour.

18. Eastern Time (ET)
Bulgarian time minus 7 hours.

19. Greenwich Mean Time (GMT)
Bulgarian time minus 2 hours.

20. Sydney Time
Bulgarian time plus 8 hours.

21. Hong Kong Time (HKT)
Bulgarian time plus 6 hours.

22. Japan Time
Bulgarian time plus 7 hours.

23. Singapore Time
Bulgarian time plus 6 hours.