Calculation of Interest Charges. Any credit or debit balance in the cash account will be combined with the balance in the margin account for the purpose of computing interest. The interest charged to Your account is calculated by multiplying any net debit balance each day by the applicable interest rate. A credit balance in any short account will not reduce the average daily debit balance in Your margin account because such credit balances are normally used to collateralize the borrowing of stock to make delivery against the short sale. However, short sale positions will be marked to the market daily and such changes resulting therefrom will affect the debit balance in Your margin account. Therefore, if such change results in a credit, such credit will be transferred to Your margin account as a credit; and conversely, if such change results in a debit, such debit will be transferred as a debit to Your margin account.
Appears in 8 contracts
Samples: Account Agreement, Account Agreement, Account Agreement
