SuccessTrade Securities, Inc. is furnishing this document to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the margin agreement provided. Should you have any questions or concerns please contact Customer Services at 1-800-597-8767.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from the brokerage firm. If you choose to borrow funds from the firm, you will open a margin account with the firm. The securities purchased are the firm's collateral for 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, the firm can take action, such as issue a margin call and/or sell securities in your account, 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. These risks include the following: |