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Understand Margin Calls - You Can
Lose Your Money Quickly and With No Notice
If your account falls below the firm's maintenance requirement, your firm generally will
make a margin call to ask you to deposit more cash or securities into your account. If you
are unable to meet the margin call, your firm will sell your securities to increase the
equity in your account up to the regular margin level.
Always remember that your broker may not be required to make a margin call or otherwise
tell you that your account has fallen below the firm's maintenance requirement. Your
broker may sell your securities at any time without consulting you first. Under most
margin agreements, even if your firm offers to give you time to increase the equity in
your account, it retains full rights to sell your securities without waiting for you to
meet the margin call.
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