What happens if a client is margin called? How much time are clients allowed to meet the margin call before positions are liquidated?
Angus: We do not make margin calls. All positions have a stop associated with them and this stop must be placed within the funds available on the clients account. If the stop is hit the position is closed. FSB: How safe are client funds? What is the situation regarding our funds deposited at Capital Spreads? Some spread betting providers have recently been circulating letters regarding the reduced segregation of clients funds. Clauses such as -: 1.) Funds that are being used as margin to support an open position will not be segregated from the company’s own funds. Angus: Capital Spreads defines ALL clients as retail and all their funds PLUS their winning bets are segregated from LCG’s own monies. 2.) Funds may be held on clients’ behalf with a bank located outside the European Economic Area meaning that in the event of insolvency of that bank may mean that the monies may not be as effectively protected as if the money were held with an equivalent bank or third party in the UK. Angus: A
Related Questions
- What happens if a client is margin called? How much time are clients allowed to meet the margin call before positions are liquidated?
- What happens if the nominations received meet, but do not exceed, the number of positions available?
- What happens if my equity is not sufficient to meet the maintenance margin requirements?
