Common use of Variation Margin Clause in Contracts

Variation Margin. Without prejudice to SHKB’s rights as aforesaid in Clause 8.3, SHKB shall be entitled to call for additional margin deposits and/or security in either of the following events: 8.4.1 The current market value of the Client’s net outstanding long position with SHKB or with respect to the Account in Loco London Gold, Loco London Silver, Loco London Platinum, London Gold or London Silver is below that of the aggregate contract value of the Bullion in question. 8.4.2 The current market value of the Client’s net outstanding short position with SHKB or with respect to the Account in Loco London Gold, Loco London Silver, Loco London Platinum, London Gold or London Silver is above that of the aggregate contract value of the Bullion in question. Client shall, immediately upon SHKB’s call for additional margin deposits and/or security, provide SHKB with such amount of cash in such currency and/or other property as specified by SHKB.