>   Risk Management & Surveillance
Risk Management & Surveillance
  • The profit and loss of clients will be adjusted from the limits on real time basis.
  • In case of erosion of Net Liquid Deposit, below USD 12,500/- due to variation margin & commissions in the ledger account, margin call will be made to replenish the shortfall of minimum deposit to USD 50,000/-.
    Table 1.1 – Illustration on Loss Adjusted From Deposits
    Description Day 1 Day 2/th> Day 3 Day 4 Day 5
    Net Liquid Deposit (Trading Limit) 37,500 22,500 15,000 14,000 11,500
    MTM Loss/ Any deduction 15,000 7,500 1,000 2,500 Square Off Mode #
    #INX GA reserves the right to place the client in square off mode

    In the illustration given in Table 1.1 above, the client will have arrange for USD 26,000 as per details given below:

    Description Amt. in USD
    A. Minimum Deposit 50,000
    B. Net Liquid Deposit (Trading Limit) 11,500
    C. Exposure Free Deposit 12,500
    D. Margin to be Funded (A-(B+C)) 26,000

  • Alerts based on losses are also defined. The net liquid deposit (NLD) is defined as the margins available to clients. In case of breaching of predefined threshold of losses, will lead to shielding actions by INX GA as per Table 1.2 given below:

    Table 1.2 – Risk Management Measures for Losses

    Sr. No Breach of Profit and Loss Threshold Action Taken
    1 45 % Loss on Net Liquid Deposit Client to bring additional liquid deposits
    2 55 % Loss on Net Liquid Deposit INX GA shall cancel all unexecuted orders and allow only square off orders
    3 65 % Loss on Net Liquid Deposit INX GA shall compulsory square off all pending open positions and the client will be deactivated for trading