Gan

Stick to farming..what you know..

Here is from my Webbroker ..some info..you start with setting up a margin account..

Portee

They can do worse than this too..

TD Waterhouse can sell your securities or other assets without contacting you. If your account goes into margin deficiency (a "margin call"), TD Waterhouse has the right to sell or buy back all or a portion of any securities held in the account to cover the shortfall. Some investors mistakenly believe that a firm must contact them for a margin call to be valid and that the firm cannot take action in the account to meet the margin call unless the firm has contacted the client first. This is not the case. TD Waterhouse will attempt to notify its customers of margin calls, but it is not required to do so.

Margin Account

Margin Disclosure Statement

Many of our clients use margin accounts to take advantage of investing opportunities. Although using margin can improve investing flexibility, we want to ensure that you fully understand both the benefits and the inherent risks. Before trading securities on margin, we encourage you to carefully review the Margin Account Agreement contained in the TD Waterhouse "Account and Service Agreements and Disclosure Documents" booklet sent to you in the mail when you opened a TD Waterhouse account.

When you purchase securities at TD Waterhouse, you may pay for them in full or you may borrow part of the purchase cost from TD Waterhouse. If you choose to borrow funds from TD Waterhouse, you can apply to open a Margin Account with us. A margin account is a type of brokerage account that allows a client to buy securities by borrowing a portion of the purchase amount from the dealer. Margin is the amount the investor must personally provide, and is the maximum loan that the broker grants. Once your Margin Account is approved, you will be able to borrow on margin at a competitive interest rate. The securities you purchase or deposit to the account are TD Waterhouse's collateral for the loan to you. Interest is charged on the borrowed amount (calculated daily, charged monthly). A margin account is also required to trade options or to short sell securities.

Please note that trading on margin may not be appropriate for all customers. It is important that you fully understand the risks associated with trading securities on margin. These risks include the following:

You are responsible for maintaining an excess margin balance on a daily basis. The amount available for a margin loan is based on the current market value of the securities held in your account or the securities you are purchasing. You must ensure that you are not borrowing more than TD Waterhouse is permitted or prepared to lend. Margin rates vary by security, and minimum margin requirements are set by the Investment Industry Regulatory Organization of Canada (IIROC). However, TD Waterhouse reserves the right to impose more stringent margin requirements at any time without prior notice. These changes often take effect immediately and may result in the issuance of a margin call.

If the securities in your account decline in value, so does the value of the collateral supporting your loan. As a result, the firm can take action, such as issue a margin call and/or sell or buy back securities or other assets in any of your accounts in order to maintain the required margin. If your account goes into a margin deficiency, there are a number of ways you can cover the shortfall. You may deposit cash or margin-eligible securities, sell sufficient securities, or buy back sufficient short positions.

You can lose more funds than you deposit in the margin account. A decline in value of the securities that are purchased on margin (or a rise in value of the securities sold short) may require you to provide additional funds to the account to avoid the forced sale or buy-back of those securities or other assets in your account. You are responsible to ensure sufficient margin is available for all orders entered and subsequently filled.

TD Waterhouse can sell your securities or other assets without contacting you. If your account goes into margin deficiency (a "margin call"), TD Waterhouse has the right to sell or buy back all or a portion of any securities held in the account to cover the shortfall. Some investors mistakenly believe that a firm must contact them for a margin call to be valid and that the firm cannot take action in the account to meet the margin call unless the firm has contacted the client first. This is not the case. TD Waterhouse will attempt to notify its customers of margin calls, but it is not required to do so. However, even if TD Waterhouse has contacted you and provided a specific date by which you can meet the margin call, the firm can still take necessary steps to protect its financial interests, including the immediate sale or buy back of securities without prior notice to you.

If TD Waterhouse is forced to take action in your account (s), you are not entitled to choose which securities or other assets are liquidated or sold to meet the margin call. Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell/buy back in order to protect its interests. Transactions placed by the firm in the process of correcting a margin call will be charged full commission fees (i.e. Electronic Brokerage Service rates do not apply). You will also be responsible for any shortfall or remaining balance owing in the account after such a sale or repurchase.

You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to an extension.

To find out more about Margin Accounts, contact your local TD Waterhouse office at 1-800-465-5463 and speak with an Investment Representative. You can also request a copy of our booklet entitled "Account and Service Agreements and Disclosure Documents" which provides comprehensive information about the Agreement applicable to all TD Waterhouse Margin Accounts.

The information provided on this page does not replace or change the terms of the Agreement applicable to all TD Waterhouse Margin Accounts as detailed in the "Account and Service Agreements and Disclosure Documents" booklet.