Hello guys, I have a few questions that should be rather basic for those of you trading CFDs. I am considering a very simple position: long CFD + long out-of-the-money american put on a US stock. I am trying to understand what will happen in the case of a sharp decline in the stock price. Let's assume the stock CFD requires 10% margin and I buy a 10% out-of-money put. I intend to always keep 20% (of the stock value corresponding to the CFD position) in cash on my account. In this case, if the stock price drops 10% I loose those 10%. My question is what will happen if the stock drops more than 10%: I see two possible scenarios: a) The better one: put accumulates value corresponding to all the further decline in the stock price and nets it out. And my broker (Interactive Brokers) allows me to keep this position since the overall balance is positive and the 10% margin of the CFD position is maintained. b) My broker (IB) doesn't care for the increased value of the put, initiates a margin call and liquidates my entire position. My question is what will exactly happen (case a or b) for Interactive Brokers and how to avoid the liquidation (since overall the balance of the account is positive)? I currently see just one way of avoiding the liquidation: selling the put and buying the cheaper at-the-money put. Another question: what happens if the stock declines after hours? Can it cause a margin call for the CFD position? Thank you for your help!