Common use of Read Your Margin Agreement Clause in Contracts

Read Your Margin Agreement. To open a margin trading facility, the product provider is required to obtain your signature. You are cautioned to carefully review the agreement, and seek advice if you don’t understand it, before you sign it. As with most loans, the margin agreement explains the terms and conditions of the margin account. The agreement describes how the interest on the loan is calculated, how you are responsible for repaying the loan, how the securities you purchase serve as collateral for the loan and risk factors. Carefully review the agreement to determine what notice, if any, the product provider must give you before selling your securities to repay the money you have borrowed.