Margin Call Policy
As a condition of you, the Client, opening and operating your trading account with OTT Financial Canada Inc. (“OTT”), you must comply with the Margin Call Policy of your carrying broker, Questrade Inc. (“Questrade”). You agree to constantly monitor your account’s margin utilization status to maintain sufficient margin available for meeting the margin requirement of each open individual leveraged CFD transaction in the account.
You must further ensure that your account value, i.e. cash available adjusted for value of positions, and transactions not yet booked, is equal to or greater than the margin requirement for all your open leveraged CFD transactions, or open positions.
Failure to meet margin requirement will result in your account being in Margin Call status. This occurs when your account’s margin utilization status has reached or exceeded 100%, at which point you are required to either reduce your open positions or deposit adequate margin to your account to satisfy the Margin Call without delay, in order to avoid having some or all of your open positions closed. Your carrying broker has sole discretion to set, change and enforce the terms of the Margin Call.
Margin Call Procedures
1. You will receive an electronic Margin Call Notification in a pop-up window on your trading platform once your account’s margin utilization status has reached 100%.
2. Once you have received a Margin Call Notification you should comply with the terms of the Margin Call by either reducing your open positions or depositing adequate margin to your account to satisfy the Margin Call without delay.
3. You are responsible for constantly monitoring your account’s margin utilization status. Failure to receive the Margin Call Notification will not absolve you of the obligation to satisfy the Margin Call.
4. You will be reminded of your outstanding Margin Call with a further notification when your account’s margin utilization status has reached 150%.
5. Your carrying broker will give you the opportunity to satisfy the Margin Call on a best-effort basis at its sole discretion; except where your account’s margin utilization status has reached 200%, at which point all your open positions will be liquidated.
6. You must allow ample time for funds in transit to be credited to your account for the purpose of satisfying the Margin Call. Uncleared funds cannot be applied to your account.
7. Your account will be set to “liquidation-only” while it is in Margin Call status, preventing you from opening any new leveraged transaction.
8. Your carrying broker reserves the right to change the terms of any Margin Call, with or without notice to you, and its right and discretion to close out your open positions shall not be limited or restricted by any Margin Call Notification previously sent.
9. OTT and your carrying broker are jointly responsible for enforcing Margin Calls. OTT is responsible for the collection of any debit balances incurred by you, and you are obligated to pay interest on, and settle, all debit balances in your account on demand.
10. This Margin Call Policy and Procedures are provided in accordance with the Margin Agreement found in the Client Disclosure Documents, as well as the Client Account Agreement (section 1.14 Obligation to Maintain Margin), and FX agreement found in the Account Agreement and Disclosure Documents .
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OTT Financial Canada Inc. (“OTT” or “OTTFX”) is a Canadian discount broker specializing in order-execution only services in over-the-counter derivatives; including currencies, commodities, and indices (also known as “Contracts-for-Difference” or “CFDs”). OTT is registered with securities regulators in Ontario and British Columbia. We are a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). OTT and does not provide investment advice or recommendations regarding the purchase or sale of any CFD. OTT is compensated through the bid-ask spread; commission and rollover costs may also apply subject to account pricing, product traded and holding period.