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Página principalBorrowing on margin to purchase securities always carries a degree of risk. You can help manage that risk by:
Margin call is a generic term that refers to both maintenance calls and Regulation T calls (also referred to as Reg T or Fed calls). Wells Fargo Advisors sets maintenance requirements for each security class and individual securities. Maintenance requirements are the minimum equity required to support a margin loan. If the margin account equity drops below the minimum maintenance requirement, a maintenance call will be issued.
A margin call occurs when your account equity falls below the firm’s maintenance requirement. An investor who receives a margin call is required to deposit funds equal to the call amount, deposit fully paid marginable or sell securities to satisfy the call. A margin call can be caused by market value declines or trading activity in a margin account. If a call is not met in a timely manner, your securities may be liquidated to meet the call and may create excess equity in your account. In falling markets, your securities may be liquidated prior to the margin call due date to prevent a negative equity position.
Wells Fargo Advisors can increase maintenance margin requirements at any time and are not required to provide advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. You may not receive an extension of time to meet a call, and the firm is not required to contact you before selling your securities to meet a call.
You should fully understand the account requirements and risks associated with using this kind of leverage in your brokerage account, especially when you borrow at or near the initial equity requirement.
The Federal Reserve authorizes this special account to preserve buying power in your margin account. It reflects any excess equity in your margin account that is above the required amount (50% for marginable securities). If the value of securities declines, this availability will continue to be preserved causing it to be elevated relative to the reduced market value.
Margin eligible securities generally include most exchange-listed stocks, preferred stocks, and warrants, as well as many government and investment-grade bonds, certain mutual funds, and unit investment trusts.
Not all securities are eligible for margin. Securities that are low-priced, newly issued (within 30 days), highly leveraged, or traded on over-the-counter (OTC) markets are typically not marginable.
Most taxable personal, partnership, and corporate-owned brokerage accounts are eligible for margin, but margin is not permitted in the following account types:
No. You can borrow against securities in a margin account for a wide range of personal or business needs, such as covering unexpected expenses, real estate purchases or consolidating debt.
A margin account offers flexibility and convenience for managing your investments and accessing funds when you need them. Here’s what you can expect:
Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
Margin borrowing may not be appropriate for all investors. When you use margin, you are subject to a high degree of risk. Market conditions can magnify any potential for loss. The value of the securities you hold in your account, which will fluctuate, must be maintained above a minimum value in order for the loan to remain in good standing. If it is not, you will be required to deposit additional securities and/or cash in the account or securities in the account may be sold. Clients are not entitled to choose which securities in their accounts are sold. The sale of their pledged securities may cause clients to suffer adverse tax consequences. Clients should discuss the tax implications of pledging securities as collateral with their tax advisors. An increase in interest rates will affect the overall cost of borrowing. Margin strategies are not appropriate for retirement accounts. Please carefully review the Margin Agreement, which explains the terms and conditions of the margin account, including how the interest on the loan is calculated.
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