9/13/2020
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`Trading Information - MG Financial Group
`
` ABOUT MG DEMO ACCOUNT LIVE ACCOUNT TRADING
`INFO RESOURCES HELP
`Margin Policy
`
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`A company’s margin policy: Initial Margin Requirement (IMR) or
`simply ‘margin’ for accounts of $1,000 to $20,000 starts with
`$500 per minimum trade size (unit) or around 1/2% both for
`‘day’ and ‘over-night’ trading. You require a minimum of $500 to
`maintain each unit.
`
`Overview -
`User Guide -
`Margin -
`Calculate Profit & Loss -
`Phone Dealing Etiquette -
`Interest -
`Types of Orders -
`Types of Accounts -
`Fraud Disclaimer -
`
`MGFG’s Margin Policy is as such:
`
`$500 for accounts under $20,000
`$1000 for accounts between $20,000 and $50,000
`$2000 for accounts between $50,000 and $100,000
`$3000 for accounts between $100,000 and $200,000
`$4000 for accounts over $200,000
`$5000 margin available on request, which entitles the
`account holder to earn interest on overnight positions.
`
`When one’s account balance is no longer able to cover one’s
`minimum margin requirement one’s positions are closed
`automatically. Due to the fact that margin requirements are so
`low the Trader will not receive a margin call warning, but will
`instead be closed out automatically.
`
`Examples:
`
`I. You have $1,000 on your account. You did one trade of one
`unit. The minimum margin requirement is $500. At the time
`when you are losing $400 you decide to close your position. Your
`new balance is $600. You still can trade. But if your losses
`amount to $101 your position will be closed automatically and
`your account will be left with a balance of $499, not enough to
`open a new position.
`
`II. You have $2000 on your account. You do one trade consisting
`of two units. The minimum margin requirement is now $1000 and
`not $500 due to the fact that you now have 2 units open. If you
`lose more than $1000 both your positions will be closed and you
`will have $1000 left in your acct.
`
`We do not close positions selectively; in a margin call all open
`positions are closed. It is important to remember that the
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`GAIN CAPITAL - EXHIBIT 1028
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`9/13/2020
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`Trading Information - MG Financial Group
`Account Status feature tracks your margin requirements on a per
`tick basis so that one is never unaware as to where they stand in
`regards to margin.
`
` ABOUT MG DEMO ACCOUNT LIVE ACCOUNT TRADING
`INFO RESOURCES HELP
`Copyright © 2000 MG Financial Group. All rights reserved.
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