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Federal Call Facts
A Federal call can cause your account to be frozen. Please read the facts below about Federal calls to help you to prevent them.A Federal call can be generated when you hold a position overnight without sufficient overnight buying power. Overnight buying power is the amount available in your account to purchase any position you wish to hold in your account overnight. It is based on your account equity, and changes depending on the amount of cash and securities held in your account.

The amount of a Federal call is calculated as one-half the amount by which the account has exceeded its overnight buying power. A Federal call must be satisfied within three days by deposit of cash or equivalent securities in the amount of the call. A Federal call can also be satisfied by liquidating securities in the account valued at twice the amount of the call (i.e., equivalent to the amount by which the account exceeded its overnight buying power); note that a liquidation charge will apply. However, you may only settle Federal calls by liquidation twice. If you do it a third time, your account will be frozen for 90 days.

Example:
Buying Power Information
$1,613.42 $10,669.62 $806.71 5,334.81CR 58.9078% $5,334.81 0.00DR 0.00DR 0.00DR

The table above shows available overnight buying power of $1,613.42. If you purchase a stock for $5,000 and hold it overnight, you will have exceeded your overnight buying power by $3,386.58 ($5,000 - $1,613.42). In this case, you will have a Federal call of $1,693.29 ($3,386.58/2). Within three days, you must either deposit $1,693.29 in cash or equivalent securities, or liquidate securities with a value of at least $3,386.58 (a liquidation charge will apply).

MarkeTrade.ELITE users may find that only day trading buying power is reflected on the system. Overnight buying power can be found in the Customer Report at http://www.marketrade.com.

To avoid triggering Federal calls and risking a 90-day restriction, we strongly recommend that you check your overnight buying power before placing each order. If you have any further questions regarding Federal calls or buying power in general, please contact us at 1-888-353-6676 or 1-415-901-0311.