What happens if someone takes a margin balance, then the value of securities drops not only below the 30% maintenance margin requirement but also below the $2,000 minimum equity?
Margin calls are due upon the creation of the call. Zecco Trading, along with our clearing firm, establishes a due date as a courtesy notice. Zecco Trading, in observation of regulatory policy, may sell your securities at any time without consulting you in order to meet the call. Typically, if a call is not met by the due date the account is considered “In Default” and Zecco Trading may liquidate positions to cover ALL outstanding calls prior to their individual due dates. Depending on market fluctuation, positions are subject to be liquidated for a greater amount than the calls. Please also know liquidations will incur a commission charge or $19.99 per trade.
Related Questions
- What happens if someone takes a margin balance, then the value of securities drops not only below the 30% maintenance margin requirement but also below the $2,000 minimum equity?
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