Lower LTVs are applied to positions that make up 25% or greater of your holdings (does not include any available cash). These restrictions are applied due to the higher risk of borrowing against an undiversified portfolio. When your portfolio is concentrated, your maximum portfolio LTV is reduced.
See the thresholds below:
| Single Position Percentage Threshold | Concentration LTV |
| Less than 24.99% | 75% |
| 25-34.99% | 65% |
| 35-49.99% | 60% |
| More than 50% | 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 |
In order to prevent concentration requirements from being applied to your account, ensure your portfolio is diversified.
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