Thursday, August 8, 2013

Margin Policy

Our Margin Policy protects you against adverse market movements by closing your positions if they risk causing losses which your account equity balance can’t sustain.
Outlined in a clear and transparent manner in section 14 of our Customer Agreement, the policy explains when positions will be automatically closed; when they will be considered to carry too much risk. This is particularly relevant in times of market volatility.
When the market moves against you, the equity balance on your account may not be sufficient to cover the maintenance margin of your open positions and/or working orders. If there are insufficient funds in your account, we may close some or all of your positions or working orders to protect you from losses, so it’s in your interest and ours to ensure sufficient funds remain in your account for positions to stay open.

Your responsibility

While we may make a ‘Margin Call’ via email to alert you if your account balance needs to be topped up to prevent positions being automatically closed, we are under no obligation - and we are sometimes unable - to do so.
It is your responsibility to manage the balance on your account to maintain the margin required for open positions and working orders.
The automatic closure under the circumstances above occurs to ensure clients do not make losses greater than they can afford.
Post a Comment