Intro music plays.
Narrator: Need to repay a margin loan or eliminate a margin call? Please note that your account must be approved for margin access, and have either an outstanding margin loan or open margin balance before this information is applicable. To review the current margin details of your account, select Account, then select Balances.
Account, then Balances is selected.
Narrator: Scroll down to the desired account, then look for Margin Details & Buying Power. Here you can review your current margin balance, interest owed, and more.
Margin Details & Buying Power is highlighted.
Narrator: If you would like to repay a margin loan, there are multiple ways to do so depending on how you prefer to manage your account. Positive cash flow will automatically pay back the loan, so you have flexibility with repayment. You can transfer funds from another account by selecting Move Money, then Transfers and Payments.
Move Money, then Transfers and Payments is selected.
Narrator: Select Online Transfers and complete the process to move the desired funds into the Schwab account with the margin balance. There are no restrictions on the type of account the marginable securities or cash could be transferred from; though please note that transfers out of certain account types such as IRAs could carry tax implications.
Online Transfers is selected, and a transfer is completed.
Narrator: Additionally, dividend payouts can also be used to repay a margin loan. Select Accounts, then select Investment Income to review dividends. Note that if a dividend payout occurs and you have an outstanding margin loan on your account, this positive cash flow will automatically go toward repaying the loan.
Accounts, then Investment Income is selected.
Narrator: Finally, you can also sell marginable securities to repay a margin loan or meet a margin call. Select Accounts, then select Positions.
Accounts, then Positions is selected.
Narrator: Select the account with the margin call. Select the drop-down menu on the right side of the desired position, then select Sell Shares to begin placing a sell order.
An account is selected, then sell shares is selected next to a position.
Narrator: Remember that margin calls should not be ignored, and the maintenance requirements for all margin positions should be maintained to avoid margin calls. Schwab reserves the right to take action to eliminate outstanding margin balances by closing out marginable positions.
Video Outro plays