Common use of Margin Account Clause in Contracts

Margin Account. You accept that your Account is a Margin Account. When you purchase securities on margin, you are borrowing money from the Firm and pledging all securities and other property in your Account as collateral for these loans. The Margin Agreement that is posted at the Firm’s website is hereby incorporated by reference and is made part of the Agreement. In consideration of the acceptance of your account under this Client Agreement, you agree to the terms and provisions as well as those of the Margin Agreement. You agree to evaluate your own financial situation, resources, investment objectives, and other relevant circumstances to determine whether margin transactions are appropriate for you. The Firm will not be responsible for making this determination. Even if you determine that margin is appropriate for the Account, the Firm determines whether to make such loans to you. You also understand that trading securities on margin involves a variety of risks related in the Firm’s Risk Disclosure including to the following: You can lose more funds than you deposit in your Account. A decline in the value of securities that you purchase on margin may require you to provide additional funds to the Firm to avoid the forced sale of those securities or other securities or assets in your Account. You could lose more than the amount you deposit in my Account. Capital Markets Elite Group can force the sale of securities or other assets in your Account. If the equity in your Account falls below the maintenance margin requirement, or any higher “house” requirements, the Firm can sell the securities or other assets in your Account to cover the margin deficiency. You will also be responsible for any shortfall in the Account after such a sale. Capital Markets Elite Group can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their accounts to meet the call unless the firm has contacted them first. This is not the case. Although the Firm may attempt to notify you of margin calls, the Firm is not required to do so, and even if the Firm has contacted you and provided a specific date by which you can meet a margin call, the Firm can still take necessary steps to protect its financial interests, including immediately selling securities without notice to you. You are not entitled to choose which securities or other assets in your Account are liquidated or sold to meet a margin call. Because all the assets in the account are collateral for your margin loan, the Firm has the right to decide which securities to sell in order to protect its interests. Capital Markets Elite Group can increase “house” maintenance margin requirements at any time and is not required to provide you advance written notice of the change. These changes to the Firm’s Margin Policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the Firm to liquidate or sell securities in your Account. You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to clients under certain conditions, you do not have a right to any extension. The Firm will determine whether to provide an extension.