Rules for margin adjustments

Why are margin requirements adjusted?

Regular Adjustments: In accordance with the requirements of our carrying broker and the Canadian Investment Regulatory Organization (CIRO), our margin requirements are periodically adjusted based on daily closing prices and the characteristics of the underlying securities.

Irregular Adjustments: In addition to the regular adjustments above, Moomoo Canada may also dynamically adjust margin requirements in response to market changes and our own risk management policies.

Adjustment Notifications: When a change to margin requirements is expected for the next trading day, we will notify you by email and in-app notification in the evening.

Rules for margin adjustments

The margin requirements set by Moomoo Canada are primarily determined by the security’s price range and its eligibility for reduced margin.

Factors affecting margin requirements

1. Price

• Low-priced stocks (below $3) are considered higher risk and are subject to a margin rate of 100%.

• As the stock price increases, Moomoo Canada will consider current market conditions and risk assessments, and may lower the margin requirement for certain securities when appropriate, allowing for higher leverage.

2. Eligibility for reduced margin

• Securities priced above 5 USD or CAD may qualify for a reduced margin requirement if certain criteria are met.

• Eligibility criteria

• US stocks: The primary consideration is whether the security has listed options available for trading.

• Canadian stocks: According to CIRO regulations, the official LSERM (List of Securities Eligible for Reduced Margin) is published quarterly. Stocks on this list may be eligible for a margin rate as low as 40%. However, Moomoo Canada may impose higher requirements on certain stocks due to internal risk management policies.

3. Special products

• Leveraged ETFs are considered high risk and are subject to a margin rate of 100%, with no margin reduction available.

Overview of margin requirements

Notes:

• Moomoo Canada will automatically adjust margin rates after each market close based on the closing price, in accordance with the above rules.

• The LSERM is updated quarterly. When changes occur (such as new securities being added), margin rates will be adjusted on the first trading day after the effective date.

• If your positions are affected by changes to the LSERM or by daily price fluctuations that result in margin rate adjustments, we may notify you promptly by email and in-app notification.

• The margin rates listed above are for reference only. Moomoo Canada reserves the right to adjust margin requirements at any time based on market conditions and risk considerations, without prior notice.

Examples

1. A US stock priced at 2.50 USD

• This falls under the "below 3 USD" category. The margin rate is 100%, so you must pay the full amount in cash to purchase.

2. A Canadian stock priced at 4 CAD

• This falls under the "3–5 CAD" category, with an initial margin requirement of 70%.

• If you buy 10,000 CAD of this stock, you need at least 7,000 CAD in cash.

3. A Canadian stock priced at 8 CAD and included in the current quarter's LSERM

• Since it is above 5 CAD and eligible for reduced margin, the initial margin requirement is 50%.

• If you buy 10,000 CAD of this stock, you need at least 5,000 CAD in cash.

4. A US stock priced at 12 USD, with exchange-listed options available

• Since it is above 5 USD and meets the reduced margin eligibility, the initial margin requirement is 50%.

• If you buy 10,000 USD of this stock, you only need 5,000 USD in cash.

5. A leveraged ETF

• Regardless of price, the margin requirement is always 100%. You must pay the full amount in cash to purchase.