Charles Schwab Tightens Margin Rules on Long-Short Trades as Tax-Bet Risks Mount
Updated
Updated · Bloomberg · Jun 18
Charles Schwab Tightens Margin Rules on Long-Short Trades as Tax-Bet Risks Mount
3 articles · Updated · Bloomberg · Jun 18
Summary
Schwab told advisers this week it will impose new margin requirements on clients using long-short strategies, adding fresh limits to a rapidly expanding tax-management trade.
The brokerage said it will issue a margin call and contact the adviser if any account breaches the new thresholds, signaling closer oversight of those positions.
The move is tied to growing concern over mounting tax bets embedded in the strategy, which has drawn more assets as investors seek tax-management tools.