--- title: Portfolio concentration description: Concentrated positions (25%+ of your portfolio) reduce your borrowing power through lower LTVs. See the concentration thresholds and a worked example. --- [Skip to content](https://help.frec.com/en-us/portfolio-concentration#main-content) [![logo-full-black](https://help.frec.com/hs-fs/hubfs/logo-full-black.png?width=100&height=26&name=logo-full-black.png)](https://help.frec.com/en-us?hsLang=en-us) - [Contact help](https://help.frec.com/contact-help) - [Login](https://frec.com/app/login) Open main navigation Close main navigation - [Contact help](https://help.frec.com/contact-help) - [Login](https://frec.com/app/login) This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. 1. [Frec Help Center](https://help.frec.com/en-us?hsLang=en-us) 2. [Borrowing & margin loans](https://help.frec.com/en-us/borrowing-margin-loans?hsLang=en-us) 3. [Margin Call & Risks](https://help.frec.com/en-us/borrowing-margin-loans?hsLang=en-us#margin-call-risks) September 15, 2026 # Portfolio concentration Lower LTVs are applied to positions that make up 25% or more of your holdings (this doesn't include any available cash). These restrictions apply because borrowing against an undiversified portfolio carries higher risk. When your portfolio is concentrated, your maximum portfolio LTV is reduced. ### Concentration thresholds | Position size (% of portfolio) | Concentration LTV | | --- | --- | | Under 24.99% | 75% | | 25%–34.99% | 65% | | 35%–49.99% | 60% | | 50% or more | 50% | Example: | Symbol | Position Value | Portfolio % | LTV | Max Borrow | Concentration LTV% | Concentration Max Borrow | | --- | --- | --- | --- | --- | --- | --- | | ABC | $50,000 | 50% | 75% | $37,500 | 50% | $25,000 | | XYZ | $35,000 | 35% | 75% | $26,250 | 65% | $22,750 | | DEF | $15,000 | 15% | 75% | $11,250 | 75% | $11,250 | | Total | $100,000 | 100% | 75% | $ 75,000 | 59% | $59,000 | To prevent concentration requirements from being applied to your account, keep your portfolio diversified. [![Frec Black Logo smaller](https://help.frec.com/hs-fs/hubfs/Frec%20Black%20Logo%20smaller.png?width=100&height=26&name=Frec%20Black%20Logo%20smaller.png "Frec Black Logo smaller")](https://frec.com/) FREC © 2026 Frec Markets, Inc. All rights reserved.