Margin Risk Document

Beirut Brokerage Corporation SAL presents this document to inform you of some basic facts about the purchase of futures and options or any securities or other financial instrument on margin, and to warn you of the risks involved in trading financial instruments in the margin account. Kindly refer the company for any inquiries or concerns you may have about trading on margin.

When buying forward contracts, options, foreign currencies, or any other type of financial instrument, you will have to pay for it in full. If you choose to purchase on margin, the financial instruments purchased becomes guarantees for the company. If the price of financial instruments decreases in your account, the margin value becomes at risk. As a result, the company can take actions, such as calling the margin or selling the financial instruments, to maintain the required margin in your account, in accordance with the Capital Markets Authority regulations.

In the event of a decrease in the value of future contracts or any other type of financial instruments purchased on margin, you are required to replenish your account by providing additional funds to the company to avoid forced sale of those deposits. In case of non-replenishment of account, the company can liquidate all deposits in accordance with the Capital Markets Authority regulations.

You are Required to rebuild the initial monetary margin when the account balance drops to the maintenance margin level, which shall be 75% of the initial margin. In case you fail or refuse to rebuild the initial monetary margin, the company shall liquidate immediately enough positions as to cover the equivalent of the value of the account balance that dropped below the required margin. In such event, the Company follow (LIFO) principle for the selection of positions to be closed.

The company can sell your deposits without contacting you: some investors believe that the company cannot settle their financial accounts to meet the margin and that's wrong, as Beirut Brokerage Corporation can liquidate client’s account , including the direct sale of securities without the need to notify the customer, so as to avoid further losses that may result in the loss of financial values from the client’s account when the margin request is not satisfied.

A company may increase requirements on the maintenance margin at any time and it is not required to provide the client with a prior notice of such changes. A firm policy is often taken immediately and can result in the issuance of margin call maintenance. The failure to respond to the call causes partial or full liquidation of positions in your account.

The client is not entitled to a time extension to call the margin, while time extension to meet the margin requirements may be available to customers under certain circumstances.