Margin Call

Auto-Closeout

Auto-Closeout is the situation when your account's margin ratio falls below 20%(i.e. below 1% margin) and all your positions will be closed out automatically to limit your trading risk.

Triggering Condition Margin Ratio falls below 20%(i.e. below 1% margin)

*Margin Ratio = Net Equity ÷ Required Margin × 100

IMPORTANT TO KNOW
For your protection, Auto-Closeout is an automatic margin management feature built within our trading platforms to minimise the probability of losing more than the amount of cash collateral available in your account. Although this is a unique feature to help limit the extent of your trading losses, it does not guarantee that your losses will be limited to the amount of funds you have deposited in your account. In a fast-moving market, prices may move dramatically against your favour and it may take some time for the system to complete the liquidation process, you may incur greater losses or lost profits as a result. There may also be a slight time difference before the system could trigger the Auto-Closeout after your account margin ratio has fallen below 20%(i.e. below 1% margin).

Margin Call

The amount of call (i.e., required additional margin) is the shortfall difference on account net equity less required margin, determined at anytime during the trading day.

When Margin Call has been triggered : No new orders can be initiated and fund withdrawal restriction will be automatically imposed on your account until the margin call has been met.

Triggering Condition Margin Ratio falls below 60%(i.e. below 3% margin) at anytime of each trading day

*Margin Ratio = Net Equity ÷ Required Margin × 100

Remedy : There are two ways to meet margin call: Add cleared funds to the account; or liquidate some or all of the positions.

Ways to Meet Margin Call
You will be required to meet the margin call as soon as possible after margin call has been issued.
  1. Add cleared funds to the account;
  2. Reduce or close all existing positions to bring your account net equity back above the initial (i.e., required) margin level*; or
  3. Both of the above.

*To determine whether insufficient margin has been cleared after reducing your open positions : Closed Units x MTM rate x 3% + Realised Profit/Loss

IMPORTANT TO KNOW

Even if market condition moves in your favour whereby net equity exceeds the required margin level (i.e., 60% of margin ratio or 3% margin), you are still required to meet the margin call.

After the insufficient margin has been restored, it may take some time for the system to remove the restrictions imposed on your affected account.

Alerts

When auto-closeout or margin call has been triggered, you will be notified through your trading account and email alerts will be sent to you.

Alert Type Condition
Auto-Closeout When current price reaches the auto-closeout rate
(Margin Ratio falls below 20% or Margin falls below 1%)
Margin Call When margin call is activated
(Margin Ratio falls below 60% or Margin falls below 3% at anytime during the trading day)

You may view your current Margin Ratio and other account status by logging in to your account and go to Account > Balance & Transfer.

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