Maintenance calls are a common occurrence when trading with TD Ameritrade, the leading online brokerage firm. These calls usually occur when an account reaches a certain level of activity, such as a large number of trades or a high balance. They are also triggered by certain activities, such as margin purchases or short sales.
When a maintenance call is triggered, TD Ameritrade sends a notification to the account holder. This notification will explain why the call was initiated, and what steps the account holder must take in order to satisfy the call. The account holder must then take action to resolve the call. Depending on the type of call, the account holder may be required to deposit additional funds or securities into the account, reduce the activity level, or close out certain positions.
If the account holder does not take action to resolve the call, TD Ameritrade may liquidate some or all of the account’s positions in order to satisfy the call. This means that the account holder could potentially lose money if the positions are liquidated at a loss. This is why it is important to take action to resolve the call as soon as possible.
When a maintenance call is triggered, the account holder has the option of speaking with a TD Ameritrade representative to discuss the issue. The representative will explain the call requirements and work with the account holder to resolve the call. The representative may also be able to provide additional guidance or suggest alternative solutions to the problem.
What are the Different Types of Maintenance Calls?
TD Ameritrade has several different types of maintenance calls. These include margin calls, options activity calls, short sale calls, and trading activity calls. They also have calls for accounts that are inactive for an extended period of time.
Margin calls are triggered when the account reaches a certain level of margin debt. This debt can be caused by purchasing securities on margin or by selling short. Options activity calls are triggered when the account has a high level of options activity. Short sale calls are triggered when a security is sold short and then rises in value. Trading activity calls are triggered when the account reaches a certain level of trading activity.
Inactive accounts are subject to maintenance calls if they remain inactive for an extended period of time. TD Ameritrade requires that an account be active at least once every twelve months. If an account remains inactive for longer than twelve months, a maintenance call may be triggered.
How to Avoid Maintenance Calls
The best way to avoid maintenance calls is to be aware of your account’s activity level and to be proactive in managing it. Monitor your position regularly and be mindful of the risks associated with trading. If you are trading on margin, be sure to keep sufficient funds in your account to cover any potential margin calls. If you are trading options, be sure to monitor your position and adjust it accordingly.
If you are unsure of how to manage your account or if you are having difficulty understanding the risks associated with trading, contact a TD Ameritrade representative for assistance. They can provide guidance and suggest alternative solutions to help you manage your account and avoid maintenance calls.
What Happens if I Don’t Resolve a Maintenance Call?
If a maintenance call is not resolved, TD Ameritrade may liquidate some or all of the positions in the account in order to satisfy the call. This could result in losses for the account holder if the positions are liquidated at a loss. For this reason, it is important to take action to satisfy the call as soon as possible. If you are unable to resolve the call, contact a TD Ameritrade representative for assistance.
Frequently Asked Questions
What is a Maintenance Call?
A maintenance call is a notification sent by TD Ameritrade when an account reaches a certain level of activity, such as a large number of trades or a high balance. It is triggered by certain activities, such as margin purchases or short sales. When a maintenance call is triggered, the account holder must take action to resolve the call.
What are the Different Types of Maintenance Calls?
TD Ameritrade has several different types of maintenance calls. These include margin calls, options activity calls, short sale calls, and trading activity calls. They also have calls for accounts that are inactive for an extended period of time.
How to Avoid Maintenance Calls?
The best way to avoid maintenance calls is to be aware of your account’s activity level and to be proactive in managing it. Monitor your position regularly and be mindful of the risks associated with trading. If you are trading on margin, be sure to keep sufficient funds in your account to cover any potential margin calls. If you are trading options, be sure to monitor your position and adjust it accordingly.
What Happens if I Don’t Resolve a Maintenance Call?
If a maintenance call is not resolved, TD Ameritrade may liquidate some or all of the positions in the account in order to satisfy the call. This could result in losses for the account holder if the positions are liquidated at a loss. For this reason, it is important to take action to satisfy the call as soon as possible. If you are unable to resolve the call, contact a TD Ameritrade representative for assistance.
Does TD Ameritrade Charge Fees for Maintenance Calls?
No, TD Ameritrade does not charge any fees for maintenance calls. However, if the account holder does not take action to resolve the call, TD Ameritrade may liquidate some or all of the positions in the account in order to satisfy the call. This could result in losses for the account holder if the positions are liquidated at a loss.
What Should I Do if I Receive a Maintenance Call from TD Ameritrade?
If you receive a maintenance call from TD Ameritrade, you should take immediate action to resolve the call. The notification will explain why the call was initiated, and what steps you must take in order to satisfy the call. The account holder must then take action to resolve the call. Depending on the type of call, you may be required to deposit additional funds or securities into the account, reduce the activity level, or close out certain positions.
Can I Speak to a Representative at TD Ameritrade if I Receive a Maintenance Call?
Yes, if you receive a maintenance call from TD Ameritrade, you have the option of speaking with a representative to discuss the issue. The representative will explain the call requirements and work with you to resolve the call. The representative may also be able to provide additional guidance or suggest alternative solutions to the problem.