Common use of Margin Requirement Clause in Contracts

Margin Requirement. Spread Bet Initial and Variation Margin. a) Each contract that you have opened with us has an ‘Initial Margin requirement’. For Spread Bets, this is either a set percentage of the value of the contract represented by the Spread Bet or a factor figure of the stake of the Spread Bet. The set percentage and the factor figure will vary according to the contract and may be varied by us at any time. You must ensure that you are aware of the ‘Initial Margin requirement’ before entering into a contract with us. You must maintain the level of Account equity above, the sum of these ‘Initial Margin requirements’ at all times. If your Account falls below this level, you must immediately deposit further funds into your Account to restore the required value. b) If at any time the value of your Account falls below the value required to maintain your open positions, we may at our absolute discretion do any of the following: - Contact you to demand you to either deposit further funds or close part or all of your open positions; - Close part or all of your open positions without reference to you; or - Wait for you to take steps to bring your Account into order. c) You should note that if your positions are closed due to insufficient Margin on your Account, you may realise a Loss as a result. This Loss, like any other, is due and payable immediately.