Customer Margin Agreement

If your account is subject to the company`s maintenance requirements, your company will usually make a margin call to ask you to deposit more cash or securities into your account. If you are unable to complete the Margin Call, your company sells your securities in order to increase the equity in your account up to the company`s maintenance needs or beyond. When an investor buys securities with Margin funds and these securities gain value beyond the interest rate applied to the funds, the investor obtains a better overall return than if he had only bought securities with his own cash. This is the advantage of using Margin funds. For a client who is a Pattern Day Trader, FINRA requires the broker to impose specific margin requirements on the client`s Margin account. If you have paid the stock in full, you will lose 50 percent of your money (your $25 loss is 50% of your initial $50 investment). But if you bought on margin, you lose 100 percent (your $25 loss is 100% of your initial $25 investment), and you still need to establish the interest you owe on the loan. 10. Customer Account Agreement. All transactions in your Margin account are subject to the Customer Account Agreement in its entirety and any other written agreement between you and us as amended from time to time. Financial products, with the exception of shares, can be purchased on Margin. For example, futures traders also often use margin. However, if the stock had fallen to $2.50, all of the client`s money would have disappeared.

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