A House Maintenance Requirement is the level of minimum margin account equity that is required by a brokerage firm. House maintenance requirement levels are based on the standards set out in Regulation T of the Federal Reserve. For stocks, the initial house maintenance requirements is set at 50% and for options it is 30%.The main reason why there's a house minimum equity Requirement Is to protect investors from over-leveraging their positions and incurring too much debt. It also provides some downside protection for brokerages in case an investor's position goes against them. By having this safety net in place, it helps to ensure that investors don't default on their obligations and that brokerages don't incur heavy losses.So if you're planning on becoming a day trader or want to start trading options, make sure you have enough money saved up to meet the initial margin requirements set by your brokerage firm. And always remember: leverage can be a double-edged sword - use it wisely!
