Intraday Risk Rules (7:30 AM
CT - 4:00 PM CT)
- If the Net Liquidating Value
(NLV) (based off the last traded market price) of your account drops below $500, or the NLV falls below 5% of
your total Initial Margin value (whichever comes first), the risk desk will make an
attempt to liquidate your entire position and charge a liquidation fee of
$25/contract.
- Micro
Products only: if the Net Liquidating Value
(NLV) (based off the last traded market price) of your account drops below $200, or the NLV falls below 5% of
your total Initial Margin value (whichever comes first), the risk desk will make an
attempt to liquidate your entire position and charge a liquidation fee of
$5/contract.
- 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.
- Let’s say the IM for 1 ES
contract is currently $6600
- 5% of IM for 1 ES contract
= 0.05 x $6600 = $330 per contract
- This means that your net
liquidating value needs to be $330 or higher for every 1 ES contract in
your position.
- $330 NLV for 1
contract,
- $660 NLV for 2 contracts,
- $990 NLV for 3 contracts,
etc.
- 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.
- 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.
- Traders are still responsible
for monitoring their positions and are financially responsible for any
losses generated by open positions.
- Margin rates can be found
below
- 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.