Margin Close- Out

What is Margin Close-Out?

Margin Close-Out (MCO) is a protective financial measure activated when your account’s total margin dips below 50% of the initial margin needed to establish a position. Upon activation, MCO automatically closes the open position. If there is more than one position open, the open position with the smallest volume will be closed automatically and this process can continue until all open positions are closed, safeguarding against the loss of your entire capital in one event.

Positions with a Stop Loss Order or limited risk protection are also subject to MCO. However, MCO does not hinder the addition of funds to your margin.

Note that MCO is operational only during market hours and will not activate outside these times.

Should your margin be insufficient and you are unable to close hedged positions, assistance is available by contacting the Brokerage Department at (+356) 27621611 or via email at brokerage@mytradit.com.