Where it sits in the outline
Parent outline section: F4: Obtains and Processes Transaction Instructions (11% of the exam). In FINRA’s 2025 outline, margin sits in Function 4, section 4.4 “Addresses margin issues”: account requirements and disclosures, Reg T, maintenance, SMA and buying power.
Key concepts
Reg T initial. The Federal Reserve’s Regulation T sets initial margin at 50% of the purchase (or of short-sale proceeds).
FINRA minimums. FINRA Rule 4210 requires $2,000 minimum equity and maintenance of 25% of long market value; short positions have higher maintenance requirements.
SMA. Excess equity above Reg T is credited to the special memorandum account and can be withdrawn as cash or used as buying power (2x SMA for marginable stock).
2026 change. FINRA replaced the pattern day trader rules and $25,000 minimum with intraday margin standards effective June 4, 2026 (Regulatory Notice 26-10), with firms allowed to phase in until October 20, 2027.
Long account from purchase to maintenance call
Buy 500 shares at $60 ($30,000) on margin. Reg T deposit = $15,000; debit = $15,000. If the price falls to $38 (LMV $19,000), equity = 19,000 - 15,000 = $4,000, which is 21% of LMV, below the 25% FINRA minimum ($4,750). Maintenance call = $750. The maintenance trigger price is 15,000 / 0.75 = $20,000 LMV, or $40 per share.
Common traps
- Reg T is an initial requirement; maintenance is a separate FINRA (and firm) requirement.
- Exam questions may still test the old PDT framework for a period after the rule change; check FINRA’s exam updates.
Practice questions on this topic
Series 7 practice questions: Margin
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Frequently asked questions
How much of the Series 7 is margin accounts and formulas?
Parent outline section: F4: Obtains and Processes Transaction Instructions (11% of the exam). In FINRA’s 2025 outline, margin sits in Function 4, section 4.4 “Addresses margin issues”: account requirements and disclosures, Reg T, maintenance, SMA and buying power.
Sources
- FINRA - Series 7 Content Outline (2025) (accessed 2026-09-23)
- Federal Reserve Regulation T (12 CFR Part 220) (accessed 2026-09-23)
- FINRA Rule 4210 - Margin Requirements (accessed 2026-09-23)
- FINRA Regulatory Notice 26-10 - Intraday margin standards replace day-trading rules (effective June 4, 2026) (accessed 2026-09-23)