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Fed (Federal) Call

After the trading day has ended, we evaluate your new purchases to confirm if your account has enough equity or SMA to cover the initial requirements on the trades. If your equity isn't enough, then a Fed Call, i.e. a "Reg T Call", will be issued. If you receive a fed call don't panic, you can satisfy the call by depositing money in the amount of the call or depositing margin eligible securities valued at two times the amount of the call.

Time is important here, as a fed call must be satisfied within two business days of the settlement date. If you receive a fed call and do not meet the fed call, then we'll liquidate (sell) enough shares of our choosing in your account to meet the call. If shares are liquidated, whether by you or us, the cost of the trade is covered by you and the account can be restricted from margin borrowing for 90 days. In short, cover a fed call ASAP. Repeated violations may result in the removal of margin privileges.

For all the fun facts on our call procedures, or if you need some good night time reading go here: Margin Account Agreement.

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.