If your equity goes to zero do your positions stay open?

[Guest michelle67]

Hi, I was wondering what happens if my equity was to go to zero say if a position started to depreciate in value. Would the position(s) be automatically closed or would it (they) stay open?

Also, is there any way to disable a guaranteed stop on a order to open?

Thanks

[dash1]

I think it will close out however, if it moves rather quickly you will have to pay in to your account. Be very carefull with such a situation

[HannahL]

Hi , thanks for the post - good question.

 

In general, you need to always make sure your available funds (equity less margin) remains a positive balance, and should monitor your account carefully to ensure this. 

 

Once your equity level falls below 50% of your margin requirement, your positions will begin to be automatically closed out, both on our stop monitor and later at dealer discretion if necessary.  This is to prevent further, heavy losses from being incurred, and may mean that your overall account balance is pushed to a debit.  It's important to be aware that your positions aren't just closed out at zero equity, they could be negative.

 

If you'd like more detailed information about our margin policy and close-out monitor, or any specific examples, please don't hesitate to ask us.

 

Thanks!

Hannah

[Guest Mufc1]

I have asked for my account to be closed but but they will not do it, its been over a week now and my equity is almost at zero. How can I make them close my account.