It is important to realise that in the same way that Margin Lending has the potential to magnify capital gains, it also has the potential to magnify capital losses. The higher the value of your investments, the more you can borrow. And the lower the value of your investments, the less you can borrow.
Investment values can fluctuate daily.
You need to keep a close eye on your investment values to ensure you do not exceed your maximum permitted borrowing level, given the value of those investments. You need to act immediately in this situation to bring your facility back within its permitted limits. Anything that causes your level of borrowing to increase, or your investment value to fall, has the potential to result in a margin call. If you receive a margin call, you must satisfy it by 2pm the next business day. If you do not satisfy the margin call in time, we are entitled to sell your investments and use the proceeds to either reduce your loan or repay your facility in full.