Margin Reset
Maintenance Margin is the amount of margin deposit required in the MF Global FX Trading Account to maintain open currency positions.
When account equity falls below Maintenance Margin, no new positions are allowed and the account enters into “liquidation only¨ mode. At this time a “pop-up¨ message will appear in the [Messages] window and a “W¨ will appear on the [MC] column in the [Accounts] window of the trading platform to issue a Maintenance Margin Warning.
Shortly after 5 PM EST, MF Global FX will confirm the margin status of the account. If account equity is still below Maintenance Margin, the Maintenance Margin Warning will be sent via email and/or phone call. The trader has 72 hours, from this notification, to deposit funds, reduce or close existing positions to bring the account back above Maintenance Margin level. If, at the end of the 72 hour period, the market has not recovered in favour of the trader and no action has been taken to restore account equity to satisfy Maintenance Margin, some or all open positions could be closed at prevailing market rates.
When account equity is restored to a level that exceeds Maintenance Margin Requirement, the “W¨ setting in the [MC] column is automatically reset to “N¨ after 5 PM EST to allow normal trading. To resume trading with minimal delay when sufficient margin has been restored in the account, the trader may also call 1.866.272.2714 (U.S. & Canada toll-free) or email sales@mfglobalfx.ca to request an immediate “Margin Reset”.
MF Global FX will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from any delay in the Maintenance Margin Reset of a trading account.
