What are Margin Calls and Liquidations?
Margin is the deposit required to maintain or open a position. At the time of each trade, the client will require funds on the account at least equivalent to the total margin requirement. It is therefore the clients responsibility from the time of the transaction and throughout the term of the position to maintain funds on the account at least equivalent to the total margin requirement. If market movements cause a situation to occur whereby there are insufficient funds on your account to cover your margin requirement then will endeavour to send you margin call emails. However the responsibility ultimately rests with the client and if further market movements occur and you are significantly overtrading CMC reserve the right to close out (Liquidate) your position(s). If this occurs you will be sent an email Liquidation Notice informing you of what has happened and the resultant status of your account.
