Common use of MARGIN AND LEVERAGE Clause in Contracts

MARGIN AND LEVERAGE. Maintenance of Margin: The Client will fund and maintain, via Advance Payments, the initial and/or Hedged Margin in the amount determined by AX Financials in accordance with the terms of the Client’s account type. These sums shall be in the form of cleared funds to be transferred to AX Financials ’ electronic currency or bank accounts. The Client warrants that all payments to AX Financials under this Agreement are in cleared funds and will not be reversed. Accounts: AX Financials will hold the Client’s funds in trust in the Client Accounts. The Client authorises AX Financials to transfer an equivalent amount of money to the Account where, at AX Financials ’ discretion, AX Financials considers that the amount of money the Client has transferred to the Client Account exceeds the amount necessary to meet the Client’s present and future obligations under this Agreement. Opening Payment: The Client will pay initial and/or Hedged Margin upon opening a position. The amount of initial and Hedged Margin for each Instrument is detailed in the Contract Specifications. Margin Requirements: AX Financials reserves the right to change the leverage or Necessary Margin requirements of a Trading Account at any time. Closure of Open Positions: AX Financials reserves the right, but is not obliged, to close the Client’s Open Positions without consent or prior notice if Equity falls below %100 of the Necessary Margin. This is known as Margin Stop-Out and is intended (without any obligation or liability of AX Financials in this respect) to protect the Client from the risk of negative Balance.