Margin Close-Out

If the total margin in a retail client’s account falls below 50% of the amount of initial margin required in respect of the open positions, one or more of the positions will be closed by the company in order to ensure that retail investors’ margin is not eroded close to zero. MCO is also applicable to Stop Loss Order positions or limited risk protection.

The MCO rule will not prevent investors from deciding to ‘top up’ their margin if they would like to do so.

Default MCO rule of the company

Under the default settings, when MCO is triggered the opened position with the least volume will close automatically. This action will be repeated any time MCO is triggered and may be repeated until all opened positions are closed. In case MCO is triggered and the symbol of a position is out of market hours, then the position will not be closed.

MCO is always triggered at 50% apart in the existence of adverse market conditions. In such rare cases the MCO is triggered at the closest rate possible to 50%.

For further information regarding the company’s execution of orders please refer to the Order Execution Policy that forms an integral part of the Client Agreement.

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