Special Considerations for Margin Accounts Clause Samples
The "Special Considerations for Margin Accounts" clause outlines specific rules and requirements that apply to accounts utilizing margin, where clients borrow funds from a broker to purchase securities. This clause typically details the minimum equity requirements, the process for margin calls, and the rights of the broker in the event of insufficient collateral, such as liquidating assets without prior notice. Its core function is to clarify the additional risks and obligations associated with margin trading, ensuring both parties understand the procedures and protections in place to manage potential losses and maintain account stability.
Special Considerations for Margin Accounts. Any Wrap Fee you pay on a margin account balance will be in addition to interest charges that would be assessed to you for the extension of credit in a margin account. If Sponsor or its affiliates extend margin credit to you, you understand and agree that your financial advisor may receive additional compensation in connection with your margin account balance. Therefore, your financial advisor may have a financial incentive to recommend that you acquire securities positions on margin or otherwise have margin credit extended to you. If you do have such margin credit extended to you, the costs you will incur, as well as the compensation received by your financial advisor, will generally increase
Special Considerations for Margin Accounts. Any Wrap Fee you pay on a margin account balance will be in addition to interest charges that would be assessed to you for the extension of credit in a margin account. If Sponsor or its affiliates extend margin credit to you, you understand and agree that your financial advisor may receive additional compensation in connection with your
Special Considerations for Margin Accounts. Any Asset-based Fee you pay on a margin account balance will be in addition to interest charges that would be assessed to you for the extension of credit in a margin account. If Sponsor or its affiliates extend margin credit to you, you understand and agree that your financial advisor may receive additional compensation in connection with your margin account balance. Therefore, your financial advisor may have a financial incentive to recommend that you acquire securities positions on margin or otherwise have margin credit extended to you. If you do have such margin credit extended to you, the costs you will incur, as well as the compensation received by your financial advisor, will generally increase as the size of your outstanding margin account balance increases. You also understand and agree that: (i) Sponsor may, on a periodic basis, assess your SPS Advantage Account various fees outlined in this Agreement, the applicable Disclosure Brochure, and the Brokerage Agreement; and (ii) Sponsor and/or its affiliates reserve the right, and you authorize them, to journal any unpaid fees (including Asset-based Fees) to your margin SPS Advantage Account to the extent you requested and Sponsor and/or its affiliates have approved margin capability on your SPS Advantage Account. An interest charge will be assessed to your SPS Advantage Account, at the rate schedule referenced in your Brokerage Agreement, for each period during which credit was extended to you in your SPS Advantage Account.