The order can be rejected due to various reasons:
- If you get the message "Exposure cannot be increased due to client configuration". Contact us to find out what the reason is.
- If you get the message "Exposure cannot be increased due to instrument configuration”, the instrument selected is not allowed for you to trade.
- In most cases it is due to high margin utilization
- Market orders, placed while the market is closed might be rejected due to the fact, that the system will calculate an additional cash buffer that must be available in order to buy shares. Please place a Limit order instead in such case, as the limit price will provide a maximum purchase price.
- There is not enough cash on the account.
The last one is relevant for trading cash instruments - stocks, bonds and ETFs. Please read more below.
Summary
Before the system allows any client to submit an order, there are a few pre-checks in place. These pre-checks are in place to try to ensure the client:
- Does not trade himself on margin.
- Has a positive cash balance in case the order is executed.
- Has a positive cash balance in case the order is executed, and all positions were subsequently to be closed at a later point.
Margin Pre-check
Margin Utilization (after trade) < 100% > Order not rejected
Margin Utilization (after trade) >= 100% > Reject order
Cash Pre-check 1
Cash Balance All (after trade) => 0 > Order not rejected
Cash Balance All (after trade) < 0 > Reject order
Cash Pre-check 2
Total Cash (after trade) => 0 > Order not rejected
Total Cash (after trade) < 0 > Reject order
Definitions
Margin Utilization MR / (AV + OC - NAMC)
MR Reserved for margin positions
AV Account Value
OC Other Collateral
NAMC Not available as margin collateral
Total Cash
Sum of:
- Cash Balance
- Transactions not booked
- Cost to Close
- Min (Margin Profit/Loss + Value of Option Positions; 0)
Cash balance All
Sum of:
- Cash Balance
- Transactions not booked
Transactions not booked
Sum of:
- Intraday Cash transfers in/out
- Cash to be booked from trades executed intraday
- Accrued Holding Fee & Carrying cost
- Accrued Interest
- Accrued CFD financing
- Futures style Premium on Exchange Traded Options