Margin account credits will sweep to your money market account, and funds will be drawn from that account to reduce margin account debits. This could affect your investment strategy and your ability to write checks against your money market account. If you prefer, your account can be structured so that margin balances do not sweep automatically. In this case, we will move only enough funds from your money market settlement account to establish and maintain the required margin equity. The Federal Reserve Board regulates the amount you can borrow.
Interest is charged on the settlement date.
Vanguard fund accounts cannot be used as collateral. When you have a concentrated position, maintenance requirements might be higher. In the event of a recent purchase or market fluctuation, we may require additional equity in your margin account. We will send you a margin call letter if assets are not available in your Vanguard money market settlement account. You can meet a margin call by sending a check, wiring funds, or sending fully paid marginable securities.