Selling short is a margin account activity, requiring that a Client Agreement (ML) be signed by the account holder(s) and submitted for approval to our new accounts department.
Short sales cannot be protected indefinitely and are
subject to buy-in at any time at your risk and expense.Before we can enter your short-sale order, we will verify the security you wish to short is borrowable so that we may complete delivery to the buyer on settlement date. Occasionally the security will be in such short supply that borrowing cannot be assured and we will have to cancel your short-sale order prior to execution.
Even when the security can be borrowed initially, enabling you to sell it short,
the stock may subsequently become unavailable for borrowing and you may be
forced to buy-in your position prior to when you would otherwise decide to close
out the transaction.If the equity in your account declines below the total of all the house margin requirements on your positions, including short positions, you will be subject to a maintenance margin call, requiring you to put up additional securities or cash, or liquidate some or all of your positions.
