New answers tagged broker
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In the US, Prime Brokers will generally follow either Reg T rules or Portfolio Margining rules. For Portfolio Margining accounts, assuming the account is somewhat diversified (not everything in one stock), they will generally allow 4 times gross leverage on the overall portfolio ($\sum_i |w_i|<=4$). This is negotiable and you may be able to get a higher ...
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For equities, the primary consideration appears to be Reg T. The primary consideration is the end-of-day margin requirement, which is, for a Reg-T margin account, 50% for longs and shorts. However, the proceeds from a short sale cannot be used to increase your liquidity, unless you have a fancier account type, which is only available for those with a higher ...
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