During a market crash or periods of extreme volatility, our Risk team may square off your MTF positions if the mark-to-market (MTM) loss reaches or exceeds 80% of your initial margin. This square-off may be executed without prior notice in order to contain risk and protect against further losses.
This safeguard is part of our risk management policy to maintain systemic trading stability and ensure margin requirements are met under volatile conditions. It applies to all open MTF positions, regardless of the stock involved.
▸ What if I add funds before the 80% MTM breach?
If you top up your margin before the MTM loss reaches the critical threshold, your position may be retained. However, the Risk team may still act based on overall exposure and stock movement.
▸ What if the stock gaps down suddenly?
In cases of extreme gap-downs, your MTM may breach limits instantly, and square-off may occur at the next available market price. It's advisable to use stop-losses or maintain buffer margins in volatile markets.