Owing to the volatility of the market the amount of Margin Requirement to

Owing to the volatility of the market the amount of

This preview shows page 11 - 13 out of 25 pages.

Owing to the volatility of the market, the amount of Margin Requirement to maintain your Open Positions may change at any time after a position has been opened due to market changes, changes made to your Account by eToro Australia (as permitted by the Financial Product Terms) or due to eToro Australia performing a revaluation for any Realised/Unrealised Loss or Realised/Unrealised Profit on your Account. If you have CFDs denominated in a currency other than the base currency of your Account, any fluctuations in the exchange rate adverse to your CFD position can lead to automatic adjustments to your required Margin Cover, so you need to monitor these CFD positions very carefully. You should be aware that you can reach the stage of not having enough Margin Cover to meet the Margin Requirement because changes in valuation of your CFDs are automatic, reflecting the rapid changes in the market values. The Margin Requirement is linked to the Margin Closeout level as the example below explains. To satisfy the Margin Requirements, you may: Close Out existing positions to reduce your Margin Requirements; or pay additional funds as Margin for your Account; or a combination of the above. If the actions taken are not sufficient to maintain the Margin Cover to meet the Margin Requirement then you risk some or all your positions being automatically Closed Out. Under the Financial Product Terms, your obligations arise from the time you have an Open Position. If the market moves so as to increase the Margin Requirements, or eToro Australia increases the Margin Requirement, you immediately owe the increased amount of the Margin Cover, regardless of if or when we contact you to pay more Margin. Your obligation to maintain the Margin Cover to meet the Margin Requirement remains at all times, whether or not we contact you and whether or not you log into your Account. You will be required to provide the required Margin Cover whether or not you receive a Margin call. In other words, you are responsible for monitoring your positions and providing the required level of Margin Cover. You might receive notice about Margin Cover requirements by email, SMS messages or, when you access your Account via the eToro Trading Platform, by messages on your screen, but you need to provide the Margin Cover whether or not you get that notice from us (including through the eToro Trading Platform).
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eToro Australia PDS (31 July 2018) 12 The values of your CFD positions are ordinarily marked to market on a continuous basis, which automatically leads to corresponding changes in Margin Cover requirements for your Account. At weekends or at other times when trading on the Exchange relevant to the Underlying Instrument is closed, some Margin Cover requirements automatically increase.
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  • Spring '17
  • Sui
  • Financial Markets, Foreign exchange market, eToro Australia, eToro Australia PDS

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