Can't understand why Margin keeps increasing way more than 2x if requirement is 1:5... What is this?

So I checked my account since some days, and after noticed all the settings on my trading212 platform were changed. I added the margin tag again, and it is what I noticed…

(This happened with all my positions but here is an example)

19 November I opened 1 position with Tesla at this price:

Screenshot of it’s values taken around 3 December (already after you changed margin requirements to 50%):

Now, here it is the screenshot at the current levels:

Can someone explain to me why margin increased? From what I understand if I open a position of one CFD @ 495.68$ and margin requirement is 50%, shouldn’t margin be 247.84$ (half the price) ?
Seeing the platform since I opened the position of the example above, margin increased by +45.43$ since I opened it on 19 November until 3 December…. and now increased +178,01$ since I bought it!

Can someone explain what’s going on please? Shouldn’t be Blocked Funds who change overtime because of swap fees instead of margin? Margin continues to rise, although the price I bought it remains obviously the same…

The reason is the fact that the margin is not a static value. It gets calculated according to the current market price, using the formula:

(Quantity * Current market price) * margin %

The interest has nothing to do with the blocked funds. It gets deducted from the free funds’ area.

1 Like

Hi Rumen, thank you for answering. I get it know. Yesterday I noticed that already, it’s 50% of market’s price.

If free funds turn to zero, in that case where are swaps deducted from?

Best regards

When there are no more free funds left, the interest is deducted from the blocked funds.

Like I thought. Thank you once again.