What happens if my equity is not sufficient to meet the margin maintenance requirements?
Your account will be subject to a margin call if your equity does not meet margin maintenance requirements, and Kensington Capital Trading Margin Department will generally attempt to notify you as a courtesy. Margin calls are due upon creation of the call. Kensington Capital, along with our clearing firm First Southwest Company, establishes a future due date as a courtesy notice. Kensington Capital in observation of regulatory policy, may sell your securities at any time without consulting you in order to meet the call. Typically, if you do not meet a call by the due date, your account will be considered “In Default” and Kensington Capital may liquidate positions in order to cover all outstanding calls prior to their individual due dates. Depending on market fluctuations, positions may be liquidated for a greater amount than the calls. If Kensington Capital liquidates any of your positions, you will be charged the broker-assisted commission rate.
