Account Type and Margin

Account type

All Clear Street Active accounts open as margin accounts. Retirement accounts (IRAs) are not offered. Cash accounts are not available as a self-serve option. If you want your account to trade at 1x only, with no leverage, contact Support.

Trading below $2,000 in equity (1x, no leverage)

Margin accounts need at least $2,000 in equity to use leverage. That is the FINRA minimum for margin accounts. Below $2,000, the account trades at 1x: no leverage and no borrowing.

At 1x, trading is limited to settled funds. When you sell a security, the proceeds become available once the sale settles: T+1 (the next trading day) for equities and options. You can't reuse unsettled proceeds to open and close another position before settlement.

Because 1x trading never uses borrowed funds, no margin interest accrues.

Using leverage and day trading ($2,000 and above)

Once your account holds $2,000 or more in equity, leverage turns on automatically. You don't need to submit a request. The account can then trade with unsettled proceeds, hold positions on credit, and day trade.

Day trading is governed by FINRA's intraday margin requirements, effective June 4, 2026. There is no $25,000 minimum and no pattern day trader designation. Your account must keep enough equity during the day to cover open positions, and any intraday margin deficit must be met promptly. See 📄 Pattern Day Trading (PDT) Rule Removed: Intraday Margin Rules and 📄 How Buying Power is Calculated for the details.

Margin accounts are subject to initial and maintenance margin requirements. Interest accrues on borrowed funds only. Falling below maintenance requirements may result in a margin call or liquidation.

Some securities aren't marginable. OTC securities, for example, can't be bought on margin.

Short selling

Short selling is available in margin accounts where account permissions allow. See 📄 Short Selling, ETB, and Locate Requests.