Margin Calls

The idea of margin FX trading is that your margin deposit acts as a good faith deposit or a performance bond to secure the larger notional value of your position. Margin FX trading allows traders to hold a position much larger than the actual account value. The MF Global FX Trading Station II platform has margin management capabilities, which allow for leverage up to levels permitted by regulation.

Trading forex on margin carries a high degree of risk, since high leverage may work against you as well as for you. If account equity falls below Maintenance Margin Requirement, a Maintenance Margin Warning will be issued with 72 hours given to bring the account back above margin requirement. If account equity falls below Liquidation Margin Requirement at any time, a Liquidation Margin Call will trigger to liquidate all open positions. Please review the MF Global FX Margin Policy & Procedures.

Please keep in mind that when the account's Usable Maintenance Margin or [Usbl Maint Mr] as displayed in the [Accounts] window of the trading platform reaches zero, no additional positions may be opened and account is in “liquidation only” mode. At this time a “pop-up” message will appear in the [Messages] window and a “W” will appear in the [MC] column in the [Accounts] window.

Traders have 72 hours to restore Maintenance Margin to a sufficient level to resume normal trading. If after 72 hours the account is still margin-deficient as determined by regulation, some or all open positions may be closed at the discretion of MF Global FX.

If account equity falls below Liquidation Margin at any time, a Liquidation Margin Call will trigger to liquidate all open positions.

A “Y” appears on the [MC] column in the [Accounts] window of the trading platform whenever positions are liquidated due to insufficient margin.

Margin requirements are subject to IIROC regulation and may change at anytime without notice. MF Global FX may set higher margin requirements based on account size, simultaneous open positions, trading style, market conditions, etc. It is the trader’s responsibility to ensure there is sufficient margin in the account at all times. All quotes and trades are subject to the terms and conditions of the Client Agreement accessible from this website.

MF Global Canada Co. is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. MF Global Canada Co. is also an approved participant of the Montreal Exchange, and a clearing participant and registered futures commission merchant of ICE Futures Canada.

MF Global FX is a division of MF Global Canada Co.,  a wholly owned subsidiary of MF Global Holdings Ltd.[NYSE:MF].  MF Global FX is compensated for its services through the bid ask spread.

Futures and Forex trading involve a substantial risk of loss and are not suitable for all investors. Please carefully consider your financial condition prior to making any investments.