Series 28: Liquidation

Liquidation

When any customer fails to meet a margin call in full within the five-day payment period, the creditor must take action to eliminate the deficiency. It must either liquidate securities sufficient to meet the margin call or eliminate the margin deficiency as it exists on the day the liquidation is required, whichever is smaller. If the margin deficiency is $1,000 or less, the broker-dealer is not required to take action.