Margin Calls

A Margin Call occurs when your portfolio value falls below the minimum required to maintain your open positions while using borrowed funds.

• Action Required: You must deposit more funds or sell positions to cover the call.
• Liquidation: If no action is taken, the clearing firm may automatically liquidate positions at random to reduce the loan amount. Folionet may notify you as a courtesy, but authorization is not required to liquidate a client in a Margin Call.

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Marginable Securities

A Marginable Security is an asset that meets regulatory requirements to be purchased using leverage. The broker can lend you money against these assets, using them as collateral. Not all stocks are marginable.

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Maintenance Margin Call

A notification issued when the equity in your account falls below the minimum level required by the broker. You must restore the margin level by:

• Depositing funds
• Selling stocks
• Transferring assets

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Maintenance Requirement

This is the minimum equity you must maintain in your Plus (Margin) Account to keep positions open. It is set by the broker and varies based on the type of securities held.