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Margin Calls
If a client has used a large amount of the margin within an account, or the position is at a loss to a degree that places the entire portfolio at risk, IFX4U will try to contact the client*, in an attempt to preserve the funds within the account. Once an account reaches $0, all positions within the account will automaticity be closed, as a result of a lack of funds. At the point of Margin Call, a trader has several options: Either to close some or all of the positions at a loss in order to avoid risking the entire portfolio, or deposit additional funds, with the purpose of allowing for market movements to reverse in the other direction prior to the zeroing of the account.
*IFX4U is not responsible for inability to reach a trader with low margin levels. IFX4U will attempt to contact the client, out of a gesture of good faith, in order to preserve the client’s funds, but cannot offer a guarantee that the client can be reached.
