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Disclosures & Privacy

Margin Disclosure

Risk and Suitability. When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from StockCross. If you choose to borrow funds from StockCross, you will open a margin account with StockCross. The securities purchased are StockCross’ collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, StockCross can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts, in order to maintain the required equity in the account. 

It is important that you fully understand the risks involved in trading securities on margin. Although StockCross may try to accommodate you, these risks include the following: 

  • You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to StockCross to avoid the forced sale of those securities or other securities or assets in your account(s). 

  • StockCross can force the sale of securities or other assets in your account(s). If the equity in your account falls below StockCross maintenance margin requirements, StockCross can sell the securities or other assets in any of your accounts held at StockCross to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale. 

  • StockCross can sell your securities or other assets without contacting you. Some investors mistakenly believe that their broker must contact them for a margin call to be valid, and that their broker cannot liquidate securities or other assets in their accounts to meet the call unless their broker has contacted them first. This is not the case. StockCross may attempt to notify its customers of margin calls, but it is not equired to do so. However, even if StockCross has contacted a customer and provided a specific date by which the customer can meet a margin call, StockCross can still take necessary steps to protect its securities without notice to the customer.

  • You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, StockCross has the right to decide which securities to sell in order to protect its interests. StockCross will attempt to liquidate on a Last-In-First-Out-Basis.

  • StockCross can increase its house maintenance margin requirements at any time and is not required to provide you advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause StockCross to liquidate or sell securities in your account(s). 

  • 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 customers under certain conditions, a customer does not have a right to the extension. 

Your application for a margin account is subject to the approval of, and may be rejected by, StockCross. 

Pledge of Securities. All money, securities and other property held, carried, or maintained for you by StockCross in your margin or short account may be pledged, repledged, hypothecated or rehypothecated, separately or together with the property of others, in an amount equal to the balance you owe to StockCross, or for a greater amount. StockCross may do so without retaining in its possession or under its control for delivery a like amount of securities or other property. 

Security for Indebtedness. In your Customer Agreement with StockCross you granted a lien on all securities and other property held in any StockCross account in which you have an interest, now or in the future, for the discharge of all your debts and other obligations owing to StockCross. This lien also secures any debit balance in your margin or short account, and extends to securities and other property that may not be acceptable as margin collateral under StockCross rules or Federal Reserve Board regulations. 

Margin Maintenance. You agree to maintain at all times such margins as may be required by StockCross, an exchange, and/or federal authorities. StockCross reserves the right at any time to demand the deposit of additional collateral for any debit balance or other obligation that you maintain in your account. StockCross may set higher initial and maintenance requirements for accounts holding a concentrated position or a position in a thinly-traded or volatile issue. Current market conditions and your financial situation may also be taken into consideration in setting requirements. 

Margin Calls. It is StockCross general policy to issue written calls for the deposit of additional collateral whenever an account falls under requirements. If an account remains in a deficiency on the stated deadline of the call, it is StockCross general policy to liquidate sufficient securities to meet the terms of the call. These policies notwithstanding, StockCross reserves the right to exercise its discretion, where permitted by regulation, in determining whether to issue a call and under what terms, and whether to liquidate securities at the specified deadline or at another time, with or without notice to you.

Liquidations in Margin Accounts. Because security prices can change quickly in volatile markets and there may be no opportunity to issue a margin call, StockCross must reserve the right in its sole discretion to close positions in your account and take whatever action it deems necessary for its own protection, without prior notice, demand, or call to you. StockCross may take such action in consideration of market conditions, such as a sudden decline in the price of a security, as well as other factors, and also in instances when a prior call for additional collateral (or similar notice) has been issued, it being understood that such prior notice does not constitute a waiver of StockCross right to close positions and cancel orders in your account without further notice of any kind to you.


 
 
 
  • 40
    Years delivering excellent customer service.
  • 1
    Work one-on-one with our Investment Specialists.
  • 11
    StockCross branch offices nationwide.
  • 200
    Countries we support.
  • $4 Billion
    Worth of assets firm-wide.
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Brokerage Products and Services offered by StockCross Financial Services, Inc. - Member FINRA and SIPC.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the investment company.  To obtain a prospectus contact StockCross at 800.225.6196. Read the prospectus carefully before investing.

Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the StockCross Options Application and Agreement, Customer Agreement, and by downloading the Characteristics and Risks of Standardized Options, and 2012 Supplements from The Options Clearing Corporation, or by requesting a copy from StockCross free of charge. 

Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. The Margin Disclosure Statement and Agreement (PDF) is available for download, or by requesting a copy from StockCross free of charge. 

Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success.

Copyright StockCross Financial Services, Inc. 2016.