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Margin change during high volatility ?


Guest Edouard

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12 hours ago, Guest Edouard said:

Hi,

Now margin requirement is 5% instead of 0,5% , does this because of high volatility now ?

Hi, if you are a registered professional client who's margin requirement is usually 0.5% then yes that may have been raised due to high volatility. This happened once before about a year ago for some UK related markets due to Brexit related problems when the professional requirement was raised briefly to 3.5%. 

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Guest benedict XV1

may i clarify, in the case of a professional client who has explicitly agreed alternative protocol on margin call, this would obviously take precedence over the 50% closeout rule. am i correct?

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On 26/03/2020 at 14:51, Guest benedict XV1 said:

may i clarify, in the case of a professional client who has explicitly agreed alternative protocol on margin call, this would obviously take precedence over the 50% closeout rule. am i correct?

Can you explain this further if I've misunderstood. 

If you're a professional client and have contacted our team regarding your margin call and agreed specific arrangement you will have slightly adjusted rules but these could differ client to client. Trader with collateral and other credit facilities, for example, are excluded.

You can only be on a margin call for 24 hours, any longer you're close. Also note, If you are on margin call going into the weekend. We’ll try to avoid having any accounts on margin call going into the weekend. So if your equity is below 100% of your margin requirement, your positions will be at an increased risk of being closed on a Friday evening.

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