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View Full Version : what does this mean??


BrianB
12-07-2005, 12:12 PM
This equity may have a margin/maintenance requirement greater than 35%.
This may cause you to receive a margin/maintenance call based on the overall equity requirement for your account.

Damon
12-07-2005, 12:59 PM
That means that if you buy stocks on margin, no more than 65% of the stocks in your portfolio at a given time may have been purchased on margin (w/borrowed money). Your equity percentage (the percentage of your portfolio purchased with cash) must remain at 35% or greater.

If your stocks drop and you portfolio loses value to the point where your equity percentage drops below 35%, you may be required to deposit additional cash or securities paid for with cash into your account. Alternatively, you can sell off some of the securities that you purchased on margin.

That's the way I understand it anyway.

BrianB
12-07-2005, 01:39 PM
that clears it up. thanks!