What about sudden unexpected volatility on stocks you offer? Do you sell non pledged holdings?
For volatile stocks, the VAR + ELM framework covers most of the risk.
In any case, if your account goes into debit and you have a Power of Attorney (POA) with us, we will communicate with you before taking any action.
For non-POA clients, we cannot take any action on non-pledged holdings; the client must take action from their end to clear the debit.
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MIS leverage tends to stay around because it’s a major intraday product for brokers, and the risk is tightly managed through automated square-offs. It’s not “safe,” but it’s predictable from a risk-control standpoint. Unless there is a spike in volatility, the leverage typically remains constant throughout the day. There’s no guarantee of a perfect square-off at 20% down—brokers only attempt it. If you want to understand how different brokers define these policies, TopAsiaFX has comparisons that break down risk rules without pushing anyone to open an account.