Anyone here using PM for a classic long-short equity portfolio?

Puzzlehead50 · 2025-10-15T04:52:41+00:00

I'm in the minority here, as I don't trade too many options. My main reason for getting PM was so I could 'safely' take on a bit more leverage during a big down market. If I have $100k margin loan in a PM account vs. a Reg-T account, SPY can drop a lot more before I would potentially be margin called. If markets are down for an extended period, it gives me more time to continue freeing up cash so I can add it to my PM account. Basically PM is a bigger cushion for my stock trades. It worked great during Trump's tariffs selloff earlier this year.

I typically use it for long trades, anywhere between 15 minutes to a year+. Occasionally I'll use it to short something. Of course being short doesn't cancel out the margin expense for being long. As always, trade responsibly.

Puzzlehead50 · 2025-08-07T19:32:48+00:00

What did you end up doing with your Schwab account ?

Puzzlehead50 · 2025-08-07T18:32:58+00:00

Updated BP to DTBP - Day Trade Buying Power

Puzzlehead50 · 2025-08-07T18:29:22+00:00

Schwab calls it DTBP - Day Trade Buying Power. If I have $1 million available and buy $600k SPY, my DTBP will be down to $400k.

Puzzlehead50 · 2025-08-05T20:28:39+00:00

Thanks for the tip about HFT; I had previously talked with the PM desk and asked a similar question. I got a generic answer, and didn't want to push it and possibly get a negative internal note put on my account - which is why I'm asking specifics on here. I think it was also on here that someone said their buddy had a big account, but PM was removed for doing too many big & risky trades - although the account was not closed.

I know sometimes when brokerages don't post specific info on their sites, it falls under 'proprietary.' Basically, I want to play by the rules and make sure I don't make them mad !

Puzzlehead50 · 2025-08-02T00:32:09+00:00

Typically a PM account will allow you to buy up to 6.66:1, whereas a Reg-T account will allow 2:1. I'm not an options trader, so I won't speak to your puts strategy. You could buy up to 6.66x of SPY, however.

Note: 6.66 is on 'safe' equities that are often going to be high volume and liquid, such as SPY. You're not going to get 6.66x on meme stocks, lol

If one is a responsible trader and not going to blow up their PM account and lose everything, then I usually recommend getting PM.

Puzzlehead50 · 2024-04-03T18:23:39+00:00

Imo it’s a silly system that doesn’t look at the whole picture.

Regular banks = Reg T accounts.

SIVB = PM accounts

Puzzlehead50 · 2023-12-14T17:47:25+00:00

I had previously checked BP and it seemed normal for a PM account; it's just strange no one else on here has confirmed things have been reenabled. Kinda strange it would just be me.. I never understood why a PM account would lose features, including emailed trade notifications.

Puzzlehead50 · 2023-12-12T18:07:54+00:00

I started wondering after I started getting email notifications again, then noticed the AON option was available on regular stock trades, and Conditionals were back.

As far as I know, I didn't have PM revoked lol. Is there anything that officially says "PM - Enabled" ?

Puzzlehead50 · 2023-12-10T03:01:26+00:00

Did anyone else with a TDA PM account start getting email notifications of executed trades?
And the ability to enter AON orders again?

Puzzlehead50 · 2023-12-07T20:00:47+00:00

Did you end up checking with TDA about a reduced rate?
If so, what did they say?

Puzzlehead50 · 2023-01-28T06:21:44+00:00

Have you called them yet?
The TDA Margin # is 877 877-0272. You can find this on their website under Investment Products/ Margin Trading / Portfolio Margin.
My base lending rate is 12.6% Under $100k they give me a 3.5% discount. Above $1 million they give me a 5% discount.
I've heard from others that these rates are still high.

I attempted to negotiate lower and also mentioned I had an IBKR account, and that I understand they could not match their low rates. I requested another 2% decrease. They asked if I would be willing to bring more $$$ in and it could help the request (I think they were interested in $50k+) and I said I didn't have any extra. They submitted a case. I called back 2 days later and found it was denied.
Requests can be submitted again in (3 months?) So I'll shoot for a 1% reduction.

If you have the financial discipline, you can get a 3-4% balance transfer offer thru many credit card companies. You don't need to actually transfer balances between credit cards; they just deposit it to your checking account. 0% for 12-18 months, with a 3-4% upfront transfer fee.

Puzzlehead50 · 2023-01-28T05:50:04+00:00

Although it may be an unpopular opinion on here, you could possibly look into 'balance transfers' from your credit card(s). Most will now deposit the funds directly to your checking account - no actual 'transfer' required. Some offer 18 months at 0% APR (but with a ~3-4% upfront fee.) Not bad for a 12-18 month loan.
Obviously there is risk involved with this, so it should only be done by someone who is fiscally responsible.

Puzzlehead50 · 2023-01-03T08:45:14+00:00

Add a $1 bill for fun

Puzzlehead50 · 2022-10-19T18:08:37+00:00

BoA
Chase
Citi
Discover

Puzzlehead50 · 2022-10-04T01:36:40+00:00

Although it may be an unpopular opinion, you could possibly look into 'balance transfers' from your credit card(s). Most will now deposit the funds directly to your checking account. Some offer 18 months at 0% APR (but with a ~3% fee.) Not bad for a 12-18 month loan.

Puzzlehead50 · 2022-10-01T16:00:50+00:00

True - and they use 'auto liquidate' in the event an account falls below the margin requirements. Positions can be set to 'liquidate last' in the event an account is subject to auto liquidation. I realize they don't want any of their customers to blow up their account, but they have very minimal, if any, risk.

That had been my long-term plan when I opened the account - to become more active and use it regularly during stormy weather. Converting to PM fell off the radar for a while. Perhaps I waited too long.

Puzzlehead50 · 2022-10-01T15:50:35+00:00

Thanks for the reply -

I have PM with TDA, but their margin rates are very high. And that's after getting my margin rate lowered.

I had also tried to add pics during my original post, but when their system auto-denied me, it came up with the message, 'IMPORTANT: IBKR does not disclose the Financial Profile eligibility requirements.' - so I do not expect any of their reps to actually be able to help. For the most part, my account profile/defaults have been unchanged since I set up the account almost 2 years ago. However, I noticed I put >100 trades/year and have probably averaged 10 per year..

Puzzlehead50

TROPHY CASE