This policy covers, where applicable, Qtrade Advisor, Qtrade Investor and Qtrade Asset Management (collectively referred to herein as "Qtrade").
First trade or no securities value in the account
Trade orders will be accepted only if there is sufficient cash in the Qtrade account (the "Account") to cover the entire purchase (including commissions).
Cash account for senior exchanges (TSX, NYSE, AMEX, Nasdaq National & small cap markets)
Trade orders will be accepted only if there is sufficient cash in the Account or equity (from a different security) equivalent to the value of the trade.
If you have available cash in your Account but it is not in the currency of a trade you wish to make, buy orders will be accepted based on your available cash and the funds will not be converted into the currency the security trades in until we receive your verbal instructions. To place instructions for the conversion of funds, please call a Qtrade Investment Representative at 1.877.669.3977 or 604.605.4198. Please note that you can choose to have a trade settle in either Canadian or US funds by placing the trade in the corresponding Canadian or US dollar account.
When you hold sufficient Money Market or T-Bill funds, you are responsible for redeeming them to cover your purchase if necessary. This redemption order can be placed online or you may call a Qtrade Investment Representative to place the order on your behalf.
Cash account (TSX Venture, CNQ, Nasdaq OTC, and other unlisted markets)
Trade orders will be accepted only if there are: (i) sufficient cleared funds in the Account; or (ii) cleared equity (from securities listed on one of the Senior Exchanges) equivalent to the value of the trade.
For cash to be considered 'cleared', it must: (i) be received by Qtrade by bank draft or certified cheque; (ii) be received by Qtrade via our bill payment system; or (iii) have been on deposit in your Account for 10 business days and drawn on a Canadian financial institution.
Sufficient 'margin excess' to cover the margin required for your purchase must be in the Account at the time you place your order. Margin Excess, also known as 'Buying Power', is defined as the difference between: (i) the loan value granted on securities held in your account; and (ii) the total amount currently being borrowed.
If your Account has insufficient Buying Power available at the time your order is placed, you can generate the margin required by selling a security. Please note that the sale of the security will increase the Buying Power only by the amount of Margin required to hold that security position and only after the sale has been executed.
Option orders will be accepted only if there is sufficient cleared Buying Power in the Account. For Buying Power to be considered 'cleared', the equity in the Account has to satisfy the above definition of cleared funds.
Margin account concentration
Loan value on a 'per security' or 'per sector' basis may be reduced if the Account is deemed to be 'concentrated'. A margin account is considered 'concentrated' when one security or sector represents a significant percentage (approximately 25% or more) of the market value of the Account.
Sufficient cash or cash equivalents (e.g. Money Market mutual funds) must be available in the Account to cover the entire purchase (including commissions) in order for your order to be accepted. It is up to each individual to sell any Money Market fund to coincide with the settlement of a purchase.
Due to the inherent risks of the following trading strategies, Accounts require a minimum of $10,000 equity for: Short selling, spread orders and uncovered equity options. For uncovered index options, Accounts require a minimum of $25,000 equity.