After you purchase securities on margin, the NYSE and FINRA require a minimum amount of equity in your margin account. The NYSE and FINRA rules require that the account have at least 25 percent of the total market value of the securities in the margin account at all times. The 25 percent is called the "maintenance requirement." Our maintenance requirement is generally 30 percent, but some select securities may have a higher maintenance requirement.
If the equity in your account falls below our maintenance requirement, we'll issue a maintenance call and ask you to deposit more cash or margin-eligible securities into your account. If you are unable to meet the maintenance call, we will sell your securities of our choosing to increase the equity in your account up to or above the maintenance requirement. If four liquidations (whether initiated by us or you) occur in a 12 month period to meet a maintenance call, your account will be restricted from margin borrowing for 90 days.
Tip: While margin can boost an investment strategy, buying securities on margin is not for everyone. Before investing on margin, please
give the Margin Account Agreement the once over to review important risk disclosure information, and see our margin interest rates.