Margin rates
Debt instruments
| Debt instruments | Margin required2 |
|---|---|
| Canadian Treasury Bills | 5% |
| Federal bonds (direct or guaranteed) | 10% |
| Provincial, state, and municipal bonds (direct or guaranteed) | 15% |
| Bonds, commercial/corporate | 20% |
| Convertible bonds/debentures | 25% |
Stocks
For instalment receipts, please contact a BMO InvestorLine representative.
| Stocks and warrants | Margin required2 |
|---|---|
| Value of $5.00 or more and eligible for reduced margin3 | 30% |
| Value of $2.00 or more | 50% |
| Leverage and inverse ETFs | not eligible for margin [effective February 4, 2010] |
Short selling margin requirements4
| Listed Stocks | Margin required2 |
|---|---|
| Value of $5.00 or more and eligible for reduced margin3 | 130% of market |
| Value of $2.00 or more | 150% |
| Value of under $2.00 | Not available to short |
Mutual funds
| Mutual Funds | Margin required2 |
|---|---|
| Value of $2.00 or more | 50% |
| Value under $2.00 | not eligible for margin |
1 BMO InvestorLine maintains the right to change margin requirements at anytime without notice.
2 The amount of funds the client must provide.
3 Securities eligible for reduced margin must be included in the S&P/TSX 60 or S&P 500.
4 Margin requirements fluctuate with the market value of the shorted stock.
2 The amount of funds the client must provide.
3 Securities eligible for reduced margin must be included in the S&P/TSX 60 or S&P 500.
4 Margin requirements fluctuate with the market value of the shorted stock.
