From time to time, we may require an investor to make a margin deposit (i.e. deposit additional cash or securities) to meet our maintenance requirement.
If one or more of the stocks you bought on margin decrease in value past a certain threshold, we'll send you a margin call. If you don't deposit additional cash or margin eligible securities by the maintenance call due date, we'll go ahead and liquidate securities in your account to meet the maintenance call.
The amount of stock sold could be up to 4 times the amount of the call. Please note that if four liquidations (whether done by us or you) occur in a 12-month period to meet a maintenance call, the account will be restricted from margin borrowing for 90 days.
Tip: Buying securities on margin isn't appropriate for every investor. Before investing on margin, please read the Margin Account Agreement for important risk disclosure information, and see our margin interest rates.