Margin Disclosure

Securities purchased on margin are used by Davenport & Company LLC (Davenport) as collateral for the loan to you. If the securities in your account decline in value, there is a corresponding decline in the value of the collateral supporting your loan and, as a result, Davenport can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held at Davenport in order to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin.

Margin Interest Rates

The margin interest rates are based on a sliding scale of percentages added to the current Prime Rate based upon the amount of your debit balance.

Up to $49,999.99Prime Rate plus 1.75%
$50,000 to $99,999.99Prime Rate plus 1.5%
$100,000 to $249,999.99Prime Rate plus 1%
$250,000 to $999,999.99Prime Rate plus 0.5%
Over $1,000,000Prime Rate*

*Contact your Financial Advisor for the current prime rate.

Margin Interest Calculation

The following factors to calculate margin interest:

  • The number of days there is a debit in the account
  • The average of the debit balance for each day it is outstanding
  • The margin interest rate charged on the debit balance for each day it is outstanding

Margin Interest Charges

Interest will be charged for any credit extended to you for the purpose of buying, trading, or carrying any securities, or for the borrowing of funds based on the collateral of the securities in your account. Your account statement will detail the specific interest rate charged, the average daily debit balance, the number of days that the debit was outstanding, and the amount of interest charged for the period.

Davenport provides you a Margin Disclosure Statement that details some basic facts about purchasing securities on margin, as well as, to alert you to the risks associated with trading securities in a margin account.

Please contact your Financial Advisor with any questions.