If your account equity drops below the margin maintenance requirements (25%-100% of the market value or higher, depending on Velox's margin maintenance requirements for that particular position), we will attempt to contact you with notification of a margin call on the next business day. If the call is not met before the due date, which is typically T+4 but can vary, Tradesk will liquidate sufficient holdings within the account to satisfy the call. However, in the event of significant market volatility, Tradesk may take necessary steps including immediately selling securities without notice to the client.
Prior to applying for margin, investors should have a clear understanding of the rules and potential risks associated with margin. For risks associated with margin accounts, we invite you to review our margin risks and disclosures within our Disclosure Library.
Margin Disclosure Statement
IMPORTANT INFORMATION ABOUT MARGIN ACCOUNTS
Tradesk Securities, Inc. (“Tradesk”) is furnishing this Margin Disclosure Statement to you in accordance with FINRA Rule 2264. Please read it carefully.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from Tradesk. If you choose to borrow funds from us, you will need to open a margin account. The securities purchased on margin are Tradesk’s collateral for the loan. If the securities in your account decline in value, so does the value of the collateral supporting your loan—and, as a result, Tradesk may take action, such as issuing a margin call or selling securities or other assets in your account, to maintain the required equity in your account.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
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1. 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 Tradesk or risk the forced sale of those securities or other assets in your account.
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2. Tradesk Can Force the Sale of Securities or Other Assets in Your Account.
If the equity in your account falls below the maintenance margin requirements or your firm’s higher "house" requirements, Tradesk can sell the securities or other assets in your account to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
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3. Tradesk Can Sell Your Securities or Other Assets Without Contacting You.
While we will typically attempt to notify you of a margin call, we are not required to do so. Even if we have contacted you and provided a specific date by which to meet a margin call, we may still take immediate action to sell securities or other assets without further notice.
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4. You Are Not Entitled to Choose Which Securities or Assets in Your Account Are Liquidated or Sold to Meet a Margin Call.
Because the securities are collateral for our loan to you, we may decide which security to sell in order to protect our interests.
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5. Tradesk Can Increase "House" Maintenance Margin Requirements at Any Time and Is Not Required to Provide You Advance Written Notice.
These changes may take effect immediately and may result in the issuance of a margin call. Your failure to satisfy the call may cause us to liquidate or sell securities or other assets in your account.
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6. You Are Not Entitled to an Extension of Time on a Margin Call.
While an extension may be granted under certain conditions, you do not have a right to the extension.
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7. Interest Charges Apply to Margin Balances.
Interest will be charged on any credit extended to you for the purpose of buying or carrying securities. The rate and terms will be disclosed separately and are subject to change.
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8. Short Selling on Margin Involves Additional Risks.
When you engage in short selling, you may be required to post additional collateral, and the potential for losses is unlimited because the price of the stock sold short could rise indefinitely.
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9. Tradesk May Loan Securities in Your Account.
By signing the margin agreement, you authorize us to lend securities held in your account. In certain cases, you may not be entitled to receive voting rights or dividends.
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10. Monitor Your Account.
It is your responsibility to monitor your margin account, ensure sufficient equity is maintained, and respond promptly to any margin calls or requests.
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If you have any questions regarding this disclosure or how margin works, please contact Tradesk’s Customer Service or review our Margin Account Agreement.