What is MetroTrade's Risk & Liquidation policy?
Accounts must meet exchange initial margin requirements by 3:30PM US central time or risk auto-liquidation.
Summary
Accounts must meet exchange initial margin requirements by 3:30 PM U.S. Central Time. Accounts that fall below defined thresholds may be auto-liquidated to protect both the customer and the firm.
Why auto-liquidation exists
Futures are leveraged products. When an account's available equity falls too close to, or below, the margin required to support open positions, continued exposure creates risk of a debit balance — for the customer and the firm. Auto-liquidation is a backstop that closes positions before that happens.
When auto-liquidation is triggered
MetroTrade generally liquidates open positions when:
- Net Liquidating Value (NLV = Account Balance +/- Unrealized P&L) drops below $500.00 (accounts holding full-size or mini contracts) or $50.00 (accounts holding only micro e-mini contracts)
In addition, any account that entered positions on day-trade margin and has not offset those positions by 3:30 PM CT may be liquidated to bring the account into compliance with full exchange initial margin by 4 PM CT.
Liquidation fees
|
Contract / Scenario |
Fee |
|
Micro contracts (MetroTrade-managed liquidation) |
$15 per contract |
|
Full-size and mini contracts (MetroTrade-managed liquidation) |
$25 per contract |
Your responsibilities
- Monitor your open positions and available margin throughout the trading day.
- You remain financially responsible for any losses generated by open positions, including any debit balance produced by a fast-moving market.
- MetroTrade reserves the right to liquidate any commodity positions at its sole and absolute discretion, without prior notice. If risk-management staff liquidates your position due to inaction on your part, the liquidation fee above applies.
Agreement
Opening an account and trading with MetroTrade signifies agreement with this liquidation policy.