Values may fluctuate significantly
in times of high volatility or market / economic uncertainty; such swings are even more significant if your positions are leveraged and may also adversely affect your position.
Margin calls may be made quickly or frequently, especially
in times of high volatility, and if you can not meet them, your positions may be closed out and any shortfall will be borne by you.
But this isn't all that helpful, because after all in
times of high volatility your position sizing is already limited.
Also, they try to build in enough policy flexibility that they can less favorable option terms to policyholders during
times of high volatility (at the risk of higher lapsation).
This is especially true during
these times of higher volatility.
Traders are cautioned that during
times of high volatility, the spreads tend to widened.
Monitor the status of your account continuously, especially before markets close for the weekend and during
times of high volatility.
Often referred to as «variation margin», margin called for this reason is usually done on a daily basis, however, in
times of high volatility a broker can make a margin call or calls intra-day.