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, or liquidate a portion of your holdings. 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.
Note: 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.