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Margin on unexecuted trades


GrumpyInvestor

Question

I note that on this platform margin is required to open an order.  I like to have a number of orders open many of which are unlikely to be executed all at once.

If margin available goes below zero can I assume that unexecuted orders are closed releasing margin before open positions are forced closed?

Thanks

M

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23 minutes ago, GrumpyInvestor said:

I note that on this platform margin is required to open an order.  I like to have a number of orders open many of which are unlikely to be executed all at once.

If margin available goes below zero can I assume that unexecuted orders are closed releasing margin before open positions are forced closed?

Thanks

M

Hi, that's correct.  You must maintain minimum Margin and Account Balance or your positions will be automatically closed.   This is called a Maintenance Margin.  This is to protect your account.    However, there is a Time Limit and trades will not be closed immediately.  However, I'm not sure of the Time you have to add Funds to your account before the positions are closed on your behalf.

Edited by nit2wynit
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