TAIFEX is a pre-margin market. Investors will need to deposit full amount of Initial Margin before placing an order.
Risk Ratio Calculation and Margin Call Notifications
Terms for Risk Ratio Calculation
Ending Balance = Beginning Balance ± Deposit/ Withdrawal/ Adjustment - Transaction Fee/Tax ± Options Premiums ± Realized Profit and Loss
Total Equity = Ending Balance ± Unrealized Profit and Loss
Equity Ratio = Total Equity/Initial Margin *100%
Risk Indicator/Risk Ratio = (Total Equity + Buy Options Market Value – Sell Options Market Value) / (IMR for Open Positions + Buy Options Market Value – Sell Options Market Value + Additional Required Margin) *100%
Risk Notifications
Intraday Notifications: Once the risk indicator/ratio is less than 75% during mid-session, we will send an intra-day risk notification to clients via e-mail and/or Bloomberg IB Chat.
Force Liquidation: According to Taiwan FCM regulations, once Risk Indicator drops below 25% during mid-session, Yuanta Futures can force liquidate all positions in bringing up the Risk Indicator to reach above 100%.
Margin Call
After Settlement Margin Call: After daily settlement (around 3-4pm), if client’s Total Equity drops below maintenance, Yuanta Futures will issue a margin call. The deadline is to deposit margin to bring account equity back to Initial Margin levels before T+1 12:00pm. Or, Yuanta Futures can force liquidate clients’ positions in bringing up the risk indicator to reach above 100%.
Please note that the Margin Call won’t be lifted even if the account’s Total Equity was once higher than the Initial Margin Rate before T+1 12:00pm.
T+1 Session
The same Risk Indicator/Risk Ratio is used in both T and T+1 session.
However, as some products are exempted from liquidation during T+1 session, the unrealized P&L for T+1 night session will be calculated differently.
Exempted Products
The unrealized P&L for exempted products will be calculated by T-session’s settlement price. This exempted products will not be marked to market during the T+1 session.
Non-exempted Products:
The unrealized P&L for all non-exempted products will be marked to market and calculated based on the market price, which shall be floating throughout the whole T+1 night session
Products exempted for liquidation during TAIFEX night session
