ECU does not hold client money; all cash and open positions are held in a client's account at their Account Provider and are managed by ECU under a limited power of attorney. Margin trading requires collateral by way of initial margin, which represents a comparatively small percentage of the total Investment Size and covers the credit risk of the Account Provider. If a position moves adversely further margin (variation margin) may be required. ECU requires that clients provide initial margin representing at least 10% of the value of the Investment Size; for example a client wishing to mandate ECU to manage an Investment Size of GBP 1 million would be required to fund an account with GBP 100,000.
Any profits or losses from currency movements accrue to the client's margin account. Account valuations or other information regarding a managed account are obtained directly from a client's Account Provider.