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Charles Schwab | How To Enable Portfolio Margin - YouTube
Channel: Hidden Freedom
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in this video we are going to go over
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how to
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apply for portfolio margin with charles
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schwab
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so let's go ahead and get started so
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we're at the login page here so let's go
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ahead and get
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logged in so once you get logged in you
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might see a screen that looks something
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like this obviously your account might
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be
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a little bit different but this is what
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their default page looks like when you
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log in this is a summary page here
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so what we're going to do from here is
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we're going to go over
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and get to the account settings area
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so to do that we're going to go
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underneath service and we're going to go
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over here to account settings
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and we're going to go click on that
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there
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should bring you to a page like this and
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obviously because there's some
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you know sensitive information on this
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particular page i went ahead and blocked
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that out so you can't see it
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but this is where we're going to apply
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for the portfolio margin
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and right here apply for portfolio
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margin now granted
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in order to apply for this portfolio
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margin you need to have
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options level three enabled okay now if
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you don't
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i believe it will automatically try to
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apply that for you
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so they're gonna you'll probably ask you
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some additional questions for that
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now i already have it enabled here
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options level three
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so i don't have to necessarily go
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through that step all right so
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um if you don't have options level three
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or you don't even have this enabled at
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all
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then you're gonna have to apply for that
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and they're going to ask you questions
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you and your net worth they're going to
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ask you you know how much money you make
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how many
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years experience you have with options
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and all that
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and if you don't have any options
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experience i
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don't know what to tell you you're going
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to need to either research
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something get another account that has
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you know easy apply
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you know like robin i think gives it
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away for free it's like easy
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to get it but all the bigger
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institutions they don't just give
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options trading away um at the very
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minimum what they might give you is
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options level zero
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okay and that allows you to do you know
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cash secured puts in covered calls and
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that's all we really care about anyway
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um but because we're using portfolio
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margin here
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you know we're going to be using this
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advanced strategies so that's the reason
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why
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they require level three and just also
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preference this and say hey
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if this is a retirement account you
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can't get anything above a level zero
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anyway
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now some brokers might call level one
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schwab calls it level zero
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all right um so just be aware of that
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you can't
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open margin on a a retirement account so
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this is a brokerage account
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so let's go and click on apply for
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margin here portfolio margin
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this brings us to a pop-up here uh
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portfolio margin options
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uh level three portfolio margin is a
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risk-based margin pulse
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policy available to qualified and
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sophisticated investors and as
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alternative to
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reg t standard margin uh which is
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most brokers are reg t stand margin uh
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reg t
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uh standard margin so if you have a
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another
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margin account out there it's got 25k in
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there that's a day trading account
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margin account
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that's not a portfolio margin just a
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little bit different requirements there
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portfolio margin aligns margin
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requirements with the overall risk of
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the portfolio and usually results in
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lower margin requirements on hedge
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portfolios compared to standard margin
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rules
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so that's the reason why there's an
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advantage going to a portfolio margin
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um i have a lot of dividend stocks in
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here and those are kind of low risk so i
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might be able to leverage those get a
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little bit more margin out of it
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and i had never really thought about
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using this account for cast secure puts
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but maybe i can leverage that account
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i'm doing pretty much everything in my
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interactive brokers account
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but i figured i'd make a video on this
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and kind of go through the stage and
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process because maybe i will use it
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in addition to investment objectives
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requirements portfolio
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margin accounts have minimum equity and
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cash upfront requirements
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portfolio margin uh requires an account
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to be enrolled
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option level three and that's what i was
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talking about if you do not already have
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options level three for this account by
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proceeding
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with this application for portfolio
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margin we will also
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be applying for options level three so i
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already have that so i'm
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just gonna be playing for the portfolio
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martin so let's go and click continue
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here
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so that brings us to this page here um
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apply for options
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trading uh current option level three so
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i already have options level three so
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we'll need to worry about that
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so let's go and scroll down here so
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scrolling down we'll just go ahead and
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click continue
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um well before i can click continue here
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let's see let's read this here
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uh apply for a portfolio margin be added
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to your account with options
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three okay yeah that's what i want so uh
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there is options level three that's what
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you get without level three i don't do
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any of this stuff i might do
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uncovered calls and uncovered puts but i
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don't do spreads i don't do
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anything like that so i do uncovered
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rollouts but
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that is what it is so let's go and click
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continue so we got some financial
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information here employment status
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for me employed
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occupation let's see engineer
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[Music]
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all right we filled a lot of this stuff
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in here and i kind of just blanked some
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of this stuff out because it's kind of
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personal so we won't really display that
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but
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i've filled all this stuff out this is
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pretty much all the standard stuff that
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any broker asks you
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and that's part of the patriot act i
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believe so it's kind of required
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um you know giving up your freedom for
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uh information
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so uh let's go ahead and scroll down
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here
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just to kind of give you an idea what
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they're talking about here i mean most
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this information people already know
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about me anyway
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so i'm not really going to hide it um if
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you've seen my other videos it's pretty
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much all out there anyway
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but stocks experience about 20 years and
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average trades per year about 100 trades
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i'd say
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average size maybe 2 000 options level
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experience extensive
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but i've been trading options for about
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13 years and
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trades per year i just put as 200 i'm
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just kind of guessing now i don't mind
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not do 200 with this particular
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particular account but you know overall
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i'm just trying to ballpark it so
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average size per trade has
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say 2 000 so let's scroll down and
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click continue
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brings us to this page here consent uh
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see by checking
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i consent box below use you know signify
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um to the terms and conditions uh let's
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see here
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you have just demonstrated and verified
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you're able to view the above agreement
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i'll just click on these just in case
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they check to see if i click on the darn
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things
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i don't really care and options
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agreement
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this is all standard stuff
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and let's click on this risk disclosure
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here i know about all this stuff i know
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the options risk
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and because i'm selling options um it's
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a lot less risky in my opinion so
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uh let's see here let's go ahead and
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click i consent
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and click continue
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brings us to the verification so
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options level current options level
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three portfolio margin requested
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yes account information employer status
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blah blah blah blank some of that stuff
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out
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sorry folks and let's go and scroll down
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so scrolling down family information
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single number dependence
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i don't have any kids that i'm aware of
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zero
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approximation like i said this is
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information we were just verifying
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uh from the previous screen um number of
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years trading
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options 13 blah blah blah so let's
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scroll down and let's see what we option
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okay so we're going to do
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agree and click submit
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[Music]
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and that brings you to this page here
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and basically please allow for up to 10
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business days of review for your
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portfolio marginal application
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you will be notified of our decision by
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email or
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mail we may reach out to you for
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additional information so
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at this point you've applied for
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portfolio margin you got to wait for
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them to go ahead and take a look at it
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now granted schwab is usually pretty
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quick
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a lot of their stuff i applied for a
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futures trading account
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and they gave me that within minutes so
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i think this might be more of a manual
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process that they need to check out
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and you know review is a little more
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riskier
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uh to just give that to anybody so
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so that's it with this video that's how
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you apply for a schwab uh
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a swap brokerage a portfolio margin
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account and
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so if you have any questions comments or
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concerns go and leave a comment below
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go ahead and like and subscribe and
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we'll see you next video thanks for
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[Music]
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watching
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you
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