(Margin requirements quoted in US Dollars may also be satisfied with a Non-US Dollar equivalent)

• Normal Stock Margin Requirements
  
  All stocks bought or sold on margin require a minimum of $2,000 in equity. Stock bought with cash does not have a minimum equity requirement. Regular stock margin requirements are as follows:
  
  
  1. Purchase: if last sale price/share >= CAN $2 then maximum (50% * marginable stock value, $2,000) otherwise, if last sale price/share < CAN $2, then maximum (100% * marginable stock value, $2000).
     
     
  2. Short sale: if last sale price/share >= CAN $2.00, then maximum (50% * marginable stock value, $2,000), otherwise, if last sale price< CAN $2.00 then maximum (100% * marginable stock value, $2,000).
     Short sale proceeds are applied to cash and the short position is subtracted from equity.
     
     
     
• Patterned Day Trader Margin Requirements
  
  The NYSE and NASD have imposed rules to limit small investor Day Trading on US stock which apply to Canadians. Customers who have made four or more US stock trades (open and close a position on the same security in a single day) within five business days in their account are considered "Patterned Day Traders". "Patterned Day Traders" are required to hold a minimum of $25,000 in "Equity with Loan Value", and therefore those customers without this minimum "Equity with Loan Value" and who have completed three day trades within five business days will not be allowed to enter another trade. This restriction will remain in effect until five business days from the first day trade have elapsed. Normal Canadian Margin requirements apply once the "Patterned Day Trader Margin Requirements" are satisfied.