Mutual Funds Margin Requirements
Mutual Funds Margin Overview
Europe Mutual Fund Margin Requirements
For residents of Europe trading mutual funds:
- Risk-based margin
The complete margin requirement details are listed in the sections below.
Mutual Funds - Non-US Residents
| Market Center Details | Products | Hours |
|---|---|---|
| Euronext Mutual Funds1 | Mutual Funds |
07:15 - 19:00 Mon - Fri CET |
| Fidelity Advisor World Funds2,3 | Mutual Funds |
01-02 |
| Investec Asset Management2 | Mutual Funds |
9:30 - 15:59 ET |
On some exchanges, different products have different trading hours.
Risk Margin Overview
What is risk based margining?
A risk based margin system evaluates your portfolio to set your margin requirements. The risk valuations of your positions are created using simulated market movements that anticipate possible outcomes. As a result, a more accurate margin model is created, allowing the investor to increase their leverage.
How are correlated risks offset?
Within a group of positions with the same underlying, 100% of the gain at any one valuation point is allowed to offset another positions loss at the same valuation point.
Example: An account holds a long stock position in stock ABC and a long put option contract in ABC. If a theoretical worst case scenario causes the underlying asset to drop 15%, then the loss that on the long stock position would be offset by the gain on the long put position.
What are my eligibility requirements?
Eligibility requirements vary according to the investor's personal information, region, and exchange.
What positions are eligible?
All positions in margin equity securities (including foreign equity securities and options on foreign equity securities, listed options on an equity security or index of equity securities, security futures products, unlisted derivatives on an equity security or index of equity securities, warrants on an equity security or index of equity securities, broad-based index futures, and options on broad-based index futures.
Additional Europe Margin Requirements
For Residents of Europe:
Use the following links to view other margin requirements:
You can change your location setting by clicking here
Disclosures
- Euronext funds are not available to residents of the U.S., Australia, Hong Kong and Canada.
- Funds are not available to residents of the U.S., Canada, Iran, North Korea, Libya, Syria and U.S. territories Puerto Rico, U.S. Virgin Islands, American Samoa and Northern Marianas Islands.
- Please contact Fidelity at 877-836-4829 to obtain the necessary selling agreement. FAWF Selling Agreements are only eligible for FINRA registered broker/dealers.
- Margin requirements quoted in US Dollars may also be satisfied with a Non-USDollar equivalent.
- Mutual Funds market value is always included in Equity with Loan Value.
- 30-day initial margin requirement does not apply to funds that are transferred from another broker (e.g. ACATs).
- Net Asset Value is computed once per day at closing by the funds at which time your margin requirement and equity will be updated.