Margin Call & Stop Out Policy
Trading accounts with S.A.M. Trade will automatically experience a margin call if the criteria below are met. It is important to note that proper risk management and placing of stop losses reduces the need for a margin call on a traders account. We advise all clients and traders to strictly adhere to margin requirements when trading.
- Minimum Margin Requirements on Open Positions must be maintained by the customer at all times.
- All open positions and pending orders are subject to liquidation by S.A.M. Trade should the Minimum Margin Requirement fail to be maintained.
- Margin requirements may change at anytime. S.A.M. Trade will do its best to inform the customer about any projected changes by email and via the trading platform's message system.
- Margin Call will occur if the total equity, at any time, equals or falls below 100% of the Used Margin. Positions will be based on the best execution prices available at the time to S.A.M. Trade.
- S.A.M. Trade will liquidate all Open Position and pending orders in a customer's account if the total equity, at any time, equals or falls below 50% of the Used Margin. Positions will be closed based on the best execution prices available at the time to S.A.M. Trade.
- All open positions on fully hedged accounts will be automatically closed at market prices should the account's equity reach or fall below 0, that applies to all our platforms.
- The placing of Stop Loss Orders, used to minimise losses, is the clients responsibility.