For short-term cash purposes, margin borrowing and interest payments are a practical alternative to winding up part of your portfolio, locking in capital gains and paying taxes on those profits. However, they pay interest to Vanguard Brokerage for the duration of the loan. 5 Risks Before placing trades in a margin account, it is important that you fully understand that this activity involves a high level of risk. Among these risks, you may lose much more than you deposit If the securities in your account lose value, you may need to deposit additional money or marginal securities to prevent us from selling these or other securities in your account. Market conditions can increase any potential loss. You are fully responsible for the money you borrow In times of extreme market volatility, the market value of securities in your account (held as collateral) may fall below your credit value. In this case, you are responsible for covering the deficit on your account. Make sure you understand all the risks For a complete list of investment margin risks, please read our initial Margin Risk Disclosure Statement, which is included in the De Vanguard Brokerage Margin Account Agreement. In accordance with FINRA rules and rules, both documents are included in our margin account application. Vanguard may tax the sale of securities or other real estate in your account If your account`s equity is covered by Vanguard`s margin requirements or higher maintenance requirements (see page 9), we reserve the right to sell securities and other real estate to your account to cover the margin default.
You are not allowed to choose which securities or assets will be liquidated or sold in your account to answer a margin call. Vanguard can sell your securities and other real estate without contacting you We will try to notify you if there is a margin call, but we are not obliged to do so. In addition, we can sell your titles at any time during the Margin Call cycle; We do not have to wait for the deadline for the margin appeal. Greatest Loss Potential: Example – You buy ABC shares for $100,000 using US$50,000 from your money market resolution fund and a $50,000 margin loan. They are selling the stock for $75,000. Their net loss is 50%, compared to 25% if paid in full without using The Margin: $25,000 lost to $50,000 in cash of $25,000, USD 0 50,000) / USD 50,000 – 50% (75,000 USD 100,000 USD) / USD 100,000 – 25% – The return on investment does not take into account the fees, commissions or interest charges paid by investors. This is a hypothetical illustration of the potential impact of borrowing on investment returns. Connect to Vanguard > See what you can do with Margin Investing How your Margin Vanguard Brokerage account only allows margin investment in Non-Pension Vanguard Brokerage Accounts with our prior authorization. 7 Manage your Margin Account How to interpret the Margin Balance detail screen When you set up a Margin account at Vanguard, your margin information will be displayed on the Margin Balance Detail screen when you log into your vanguard.com account. (In the drop-down list, select My Balances and Stocks accounts, then details the balance of the margin to display.) Below is an example of the information you can find online. My Accounts Balances and Holdings Thomas Shareholder Brokerage Account Margin Balance DetailSan teil zum 01/09/2015 Purchasing Power Margin Call Information Vanguard Prime Money Market Fund $0.00 Cash Trading Date Balance $0.00 Margin Cash available $18, Home Call $0.00 Federal Call – Funds Available, to trade $18, total purchase $37, value of open purchase limit orders 0.00 -State order Status of the Order Margin Summary 7 months to the present Day Margin Interest margina 0.00 Descriptions 1 Current balance of your money market settlement fund (most often the Vanguard Prime Money Market Fund, but it could also be Vanguard-Without Money Market Fund).