Margins
To help customers avoid reaching this deficiency, CKL TRADER now supports Soft Edge margining, which includes color-coding on the Account Screen and pop-up warning messages to notify customers that they are approaching their margin limits. These features allow you to take action, such as entering margin-reducing trades, to avoid having CKL liquidate your positions. Soft Edge margining colours on the Account screen convey the following information at a glance: Yellow - You have only a 5% cushion above the margin requirement. Orange - Your margin cushion is depleted and you have a short time to enter into margin-reducing trades before CKL begins to liquidate your positions. At this point you will not be able to enter into any trades that might increase your margin. Red - CKL will shortly start to liquidate positions as necessary to bring your account back within the margin limits. Soft Edge and real-time margining allow you to understand your trading risk at any moment of the day. All of the calculations below as well as other real-time account statistics can be found in the CKL TRADER account window. For a detailed description of the account window and its underlying calculations, see the CKL TRADER User's Guide. It should be noted that all liquidations are subject to the normal commissions. New Position Margin Calculation Upon submission of an order request, a check is made against real-time available funds. If available funds including the order request >=0 the order is submitted, if it is negative the order is rejected. The following calculations are used to determine available funds: Commodities available funds = Commodities net liquidation value - Commodities initial margin requirement In addition, you are required to have a minimum of $2,000 or USD equivalent of commodities net liquidation value to open a new position. Maintenance Margin Calculations On a real-time basis, excess liquidity is checked to ensure that it's >=0, if it is negative the account is subject to liquidation on a real-time basis. The following calculations are used to determine excess liquidity: Commodities excess liquidity = Commodities net liquidation value - Commodities maintenance margin requirements Risk based margin systems Exchanges consider the maximum one day risk on all the positions in a complete portfolio, or subportfolio together (for example, a future and all the options delivering that future). The general calculation method is as follows: Exchange assigns scanning ranges for price movements, volatility shifts, and other risk directions. The ranges are based on observations of historical performance of the underlying instrument. Every instrument (stock/option/future) is valued over the ranges of price, volatility, etc. The resultant value matrix is distrCKLuted to CK Locke & Partners on a daily basis. CKL values the (sub)portfolio over the matrix and determines the worst case scenario loss using standard models approved by the exchange. The margin is calculated as the difference between the current portfolio value and the worst case value. Underlying Product description Trading Class Intraday Initial Intraday Maintenance Overnight Initial Overnight Maintenance Currency SNFE SPI S&P ASX 200 INDEX AP 3125 2500 6250 5000 AUD
CKL calculates initial and maintenance margin requirements on a real-time basis, and overnight and Reg T margin at the end of each day, and will liquidate positions on a real-time basis if there is a margin deficiency.
Exchange
CKL TRADER Intraday Futures Margin and Futures Options Hours
All Futures products will be margined at 50% of the normal margin requirements during normal liquid trading hours for each product type.
Each day at 15 minutes before the close of the normal trading session for a product, margin requirements will revert back to the 100% requirement until the opening of normal trading hours the next day.
Margin requirements will always be applied at 100% for all spread transactions.
CKL Maintenance Margin Minimums
See cklockeonline/marginrequirements
CKL Initial Margin Minimums
125% of Maintenance Margin
Futures Options
Margin requirements are determined by risk based portfolio analysis models specified by each exchange. For specific details, visit the specific exchange site in question.
CKL futures minimums and 50% Day trading rates will apply.