What is Margin Close- Out rule?
In the event that the total margin of your account falls under 50% of the amount of the initial margin required to open positions, the system will close one or more of the open positions in order to protect your account's equity from eroding to zero.
Margin Close-Out (MCO) rule also applies to positions with a Stop Loss Order or limited risk protection.
Keep in mind that the MCO rule will not prevent you from adding to your margin if you wish to do so.
Company’s MCO rule
According to the set company’s MCO rule, when triggered, the open position with the least volume will be closed automatically.
The rule will apply any time MCO is activated and may be repeated until all the positions are closed.
Keep in mind that the MCO rule applies only during market hours. In case the symbol of the position is out of market hours, the position will not be closed.
If the required margin is not enough and you want to close any hedged positions, you need to make the request by calling the Brokerage Department on +302112340924.
For further details regarding the company’s execution of orders please refer to the Order Execution Policy that forms an integral part of the service agreement.