EdgeClear's Risk Rules

EdgeClear's Risk Rules

Intraday Risk Rules (7:30 AM CT - 4:00 PM CT)

  1. If the Equity/Margin ratio drops below 5%, or the Net Liquidating Value (NLV) (based off the last traded market price) of your account drops below $500, or in the event that you lose 80% of your starting cash on hand (whichever comes first), the risk desk will make an attempt liquidate your entire position and charge a liquidation fee of $25/contract.
  2. Micro Products only: If the Equity/Margin ratio drops below 5%, or the Net Liquidating Value (NLV) (based off the last traded market price) of your account drops below $200, or in the event that you lose 80% of your starting cash on hand (whichever comes first), the risk desk will make an attempt liquidate your entire position and charge a liquidation fee of $10/contract.
    1. Equity/Margin Ratio is calculated by dividing current NLV by Initial Margin (IM). An example of this calculation using the E-mini S&P (ES) can be found below.
      1. Let’s say the IM for 1 ES contract is currently $6600
      2. 5% of IM for 1 ES contract = 0.05 x $6600 = $330 per contract
      3. This means that your net liquidating value needs to be $330 or higher for every 1 ES contract in your position.
        1.  $330 NLV for 1 contract,
        2. $660 NLV for 2 contracts,
        3. $990 NLV for 3 contracts, etc.
  3.  If the account does not meet the initial margin (traded intraday) or maintenance margin (positions carried over from previous day) you must close your position and be within required initial or maintenance margins at least 5 minutes before the end of the current session.
    1. If the position is not liquidated 5 minutes before the close, the trade desk will attempt to close the entire position for you and charge $25.00 per contract for a broker assisted trade.
  4. Traders are still responsible for monitoring their positions and are financially responsible for any losses generated by open positions.
  5. Margin rates can be found below
    1. CME: Click Here
    2. ICE: Click Here
    3. Eurex: Click Here
  6. Posted margins valid up to 50 contracts. Trading more than 100 contracts requires additional margin.

Overnight Risk Rules (5 PM CT - 7:29 AM CT)

  • If your account's NLV drops below 10% of your total Initial Margin Value, the risk desk will make an attempt to liquidate your entire position and charge a liquidation fee of $25/contract.

If you have any questions, please contact EdgeClear's team.

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