Margin Disclosure Statement
If you choose to borrow funds from your firm, you will open a margin account with NFS. The securities in your margin account are NFS’s collateral for the loan to you. The actual amount you can borrow and NFS’s margin maintenance requirements may vary depending on NFS’s internal margin policies, which exceed the margin requirements of FINRA and NYSE. NFS’s margin policies are subject to review and revision at any time in NFS’s sole discretion. NFS reserves the right to alter the terms on your margin loan at any time to comply with changes in NFS’s policies. If the securities in your account decline in value, so does the value of the collateral supporting your loan and, as a result, NFS and your broker-dealer can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with NFS through your broker-dealer, in order to maintain the required equity in the account. NFS may also take action to sell securities or other assets in your accounts held with NFS and with certain affiliates.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
- You can lose more funds than you deposit in the margin account.
- NFS and your broker-dealer can force the sale of securities or other assets in your account(s).
- NFS and your broker-dealer can sell your securities or other assets without contacting you.
- You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
- NFS can increase its “house” maintenance margin requirements at any time and is not required to provide you with advance notice.
- You are not entitled to an extension of time on a margin call.
- NFS can loan securities held in your margin account, which collateralize your margin borrowing.
- Short selling is a margin account transaction and entails the same risks as described above.
- In addition to market volatility, the use of bank card, checkwriting, and similar features with your margin account may increase the risk of a margin call.
Margin credit extended by National Financial Services LLC, Member NYSE, SIPC. Contact your broker-dealer regarding any questions or concerns you may have with your margin account.