Establishing, and subsequently maintaining, a margin loan requires the following preconditions: The client must manage a "Margin" type account (borrowing is not allowed in a "Cash" type account). Your account type can be found in the Account Information section of your statements. To access recent statements, log in to Client Portal/Account Management and select Reports followed by Statements; The client must manage equity of at least USD 2,000 (or equivalent) in the securities segment of the account in which loans are maintained; The account maintains sufficient Equity With Loan Value to sustain the loan. Assuming those conditions are met, a margin loan is created by: Purchasing a security without having sufficient cash (in the same currency denomination as that in which the security settles) to fully pay for that security at settlement; Withdrawing funds in excess of settled cash in the denomination of the currency being withdrawn; Assessment of a fee in an amount which exceeds the settled funds on hand (in the same currency denomination as that in which the fee was assessed).

NOTE: MEXEM does not issue margin calls and clients whose accounts are no longer margin complaint are subject to forced liquidation of positions to restore margin compliance.

See also: How do I upgrade my account to use margin or Portfolio Margin?