Common use of Margin Calls Clause in Contracts

Margin Calls. 11.2.1 If there is an adverse movement in the value of a Transaction you may need to add additional funds in order to cover the amount of the adverse movement and to supplement the Initial Margin. As such, in order for you to continue to hold open Transactions you must maintain sufficient funds in your Account to cover the Initial Margin and the value of any adverse market movements. 11.2.2 You acknowledge that you may be required to deposit a substantial additional sum at short notice to maintain your Margin balances at a sufficient level to cover adverse price movements (i.e. unrealised losses). You may be subject to a Margin Call to pay additional Margin if there are insufficient funds in your Account. During the period your position/s remain/s open with the Company, you must maintain a Margin Level of at least 50%. The Margin level is a percentage calculated as follows: (Total Equity divided by Used Margin) multiplied by 100, where: (a) The Used Margin is the amount of funds required to ensure you have enough money to cover against losses on all of your open contracts at any one time; and (b) For calculation purposes, all relevant figures of Used Margin will be converted into your account currency. Once your Margin level reaches 50% or less, the company may in its entire discretion and without further notice, Close Out all of your open positions unless additional funds are deposited into the Account or the market moves such that the account value returns above the minimum Margin Level. 11.2.3 You acknowledge that if you do not maintain sufficient funds to meet the Margin requirements to maintain an open Transaction(s) your open Transaction will be Closed Out by the Company. We will take reasonable steps to notify you before we Close Out your open position(s) and Margin Calls may be made by notification via our Online Trading Platform. You acknowledge and agree that it is your responsibility to actively monitor and manage your Transactions and your obligations, including ensuring that you maintain sufficient funds to meet Margin requirements to maintain your open positions.