Cause: Maintenance requirements exceed an account’s margin equity.
Due: Generally, Trade Date + 3 business days (T + 3): however, in the case of low margin equity or excessive risk the length of time given to meet the call can be reduced or the call can even be due immediately.
Meeting a Maintenance Call: Maintenance calls may be met by any combination of the following methods:
- a deposit of funds in the amount of the call,
- market appreciation,
- liquidation of non-marginable securities in the amount of the call,
- liquidation of marginable securities that generate sufficient margin release,
- or by a deposit of margin-eligible securities valued at 1 and 1/3 times the amount of the call (based on a 25% requirement).
Please be aware that Maintenance calls are issued cumulatively.
Below is an example of how this policy affects Maintenance calls:
As of Monday’s close an account’s margin equity was below maintenance requirements by $1,000. The call would be issued Tuesday morning which would be due Thursday (T+3) and go past due on Friday.
If the market moved against the account further on Tuesday by an additional $2,000, this amount will be added to the amount of the original call, which changes the amount that is due on Thursday from $1,000 to $3,000. OH will issue a call for $3,000 using the original trade date and due date.
If the market moved against the account again on Wednesday by another $2,000, the amount of the call due on Thursday will change from $3,000 to $5,000 and will be considered to be past due on Friday if the client does not either liquidate positions to cover the call or make a deposit that will clear in time to satisfy the call.
If the market moved against them again on Thursday by another $3,000, a call for $8,000 will be issued on Friday, with a due day of Thursday, meaning this amount will already be past due.
Friday morning OH would liquidate to cover the $8,000 past due call, plus any further market depreciation that day.
This account will receive four calls, each with the original trade date – and all with the same due date.
|Call Amount||Due Date|
This policy does not affect accounts with low margin equity (< 20%). Maintenance calls will still be due T+1 Note: Please be aware that ACH and check deposits do not meet margin calls until the funds become available for trading. ACH deposits and check deposits become available for trading on the 2nd business day after being received. It is highly recommended to send a wire.