Brian,
The best place to check is the customer agreement for each brokerage.
Here are a couple of paragraphs from Datek`s:
4.The amount of credit which may be extended by us and the
terms of such extension are governed by rules of the Federal
Reserve Board, the NYSE and NASD. Within the guidelines of
these rules and subject to adjustment required by changes in
such rules and our business judgment, we establish certain
policies with respect to margin accounts. You acknowledge that
we may require the deposit of additional acceptable collateral at
any time. Margin account equity is the current market value of
securities and cash deposited as security less the short market
value of short securities less the amount owed us for credit
extended at our discretion. It is our general policy to require
margin account holders to maintain equity in their accounts in
excess of the minimum equity requirements stated in NASD
Rule 2520 (Margin Requirements). Additionally, certain
securities may be ineligible for margin credit from time to time.
Datek Online reserves the right, at our sole discretion, not to
extend margin on any security for any reason.
5.Notwithstanding the above general policies, we reserve the
right, at our sole discretion, to require the deposit of additional
collateral and to set required margin at a higher or lower
amount with respect to particular accounts or classes of
accounts as we deem necessary. In making these
determinations, we may take into account various factors
including the size of the account, liquidity of a position,
concentrations of securities in an account, or a decline in
creditworthiness. It is our general policy to liquidate securities
to satisfy margin calls on the due date if not met by the
deposit of cash or securities. If you do not provide the
additional collateral, we have the right to sell any or all
securities and other property in your account; buy any or all
securities and other property which may be short in your
account; cancel any or all open orders; and/or close any or all
outstanding contracts. Furthermore, if market conditions
warrant, we reserve the right to liquidate securities prior to the
margin call due date without any notice to you. It is understood
that our giving of any prior demand or call or prior notice of the
time and place of such sale or purchase shall not be considered
as a waiver of our assigned and legal right to sell or buy without
any such demand, call or notice.
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