CFD Calculator for leverage change

Weā€™re currently working on the app so some figures may not be accurate.

Can you provide the following?:

ACCOUNT VALUE
BLOCKED FUNDS
FREE FUNDS
MARGIN INDICATOR (Percentage)

URGENT HELP PLEASE. Iā€™m new to CFD this is my current situation:

Whatā€™s going to happen to me ? What is the best course of action? What will happen to my account? And do I have any reason to worry?

IF YOUR PORTFOLIO ONLY CONTAINS STOCKS (no indexes, FOREX, commodities, etc.), I believe your BLOCKED FUNDS will become Ā£20,086.03 and the margin indicator will drop to 34% so youā€™ll receive a margin call but your funds wonā€™t be sold until the margin indicator hits 25%.

That assumes no fluctuation in the value of your positions.

Hey are you sure? I used the calculator and it said assuming I had no more funds then my margin will become 45%

To be honest, no, Iā€™m not 100% sure.

However, weā€™ve just updated the calculator. Can you try it again please and at least check that it matches what I said?

Using the calculator I am also getting 34%.

Your account value is 13840.32 (blocked funds plus free funds). Your blocked funds are 8034.41.

Hey thanks bro, just checked ur right. Honestly man im scared, do you think im in reason to worry?

Hi, can someone confirm positions will only be closed if hits 25% even with margin increase on open positions? Or does it change to 50% too? Please help.

The margin change will decrease your margin status and positions will still close at 25%.

That is a lot clearer, thanks for putting that out out!
Using that calculator on my status, my margin level will drop from 70.9% to 48.74%, requiring to top up Ā£1522. However, as I understand it I would need to top up by that much if I want my margin level to go back to 70.9% and if NO ACTION is taken, none of my positions will be closed, as I will still be higher than the 25% mark where ALL position close.
Is that right, or the percentage of my status margin still need to be at minimum of 50% or at any other figure for that matter?

You will not be closed if itā€™s anything about 25%

Under 50% you will need to either close your positions or add more funds to trade into new positions ( unless Iā€™m horribly wrong here I think thatā€™s the case )

Tbh if youā€™re in profit Iā€™d be closing out all my positions and taking my hard earned cash elsewhere, unless youā€™re really desperate to hold on to a widening spread and 2.5x decreased return on invested capital.

If youā€™re in a losing position, just take the hit and close it out losing the invested margin or let them margin it out, especially if youā€™re already close to a margin call. Youā€™ll still be sitting on an unrealised loss, youā€™ll just be committing more of your own money to earn that negative amount. The nature of the game with CFDā€™s and shorter term trading is capital preservation. You can not lose more money than you put it, so why put in more money to lose.

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Thanks for that. The reason why I was asking that is really to clarify if the trigger for closure on margin call would be implemented on the OVREALL status margin or INDIVIDUALLY per each position?
I have many positions, which I still intend to keep and rather than FUNDING my account to accommodate the changes, I have already closed quite a few positions last Friday, which therefore reduced my BLOCKED FUNDS amount. As it happens (checking pre-market), I wish I hadnā€™t, as I realise now, by using the calculation that my overall status margin, would have dropped to 28.5% which is still enough within the 25% margin call. OK, most were closed on profit, but still was not sure of how exactly the closure would be triggered, with newly required margin- on the margin level of status, or on each position individually. Makes it even more complex when I have more than one position per 1 instrument.

@obrienciaran, @RIchard.W and I have been doing intensive testing on the calculator.

We believe that the ā€œMargin after leverage change if no action takenā€ figure is accurate, but weā€™ve noticed a few circumstances where the ā€œResultā€ (the funds that need to be added to reach the ā€œdesired marginā€) doesnā€™t match our expected output.

@Richard.W has created an alternative website:

Alternative Calculator

Assumptions. This calculator of the account margin % indicator is based on what has been written by @David in this post.

  1. Over 50% ā†’ [Total funds / (Total Funds + Blocked funds)] x 100%
  2. Under 50% ā†’ (Total funds / Blocked funds) x 50%

We assume that the requirement for blocked funds increases by a factor of 5/2.

He has developed this calculator independently, without any knowledge of the logic used in the other calculator.

CAN EVERYBODY ENTER THEIR DATA INTO BOTH CALCULATORS PLEASE. If the results match then thatā€™s a good sign. If they donā€™t, can you post your ACCOUNT VALUE, BLOCKED FUNDS and DESIRED PERCENTAGE figures please? If youā€™d prefer not to make the public, please send a message directly to me.

If you just type 200, 100, 50%, Iā€™ll know that means:

ACCOUNT VALUE: 200
BLOCKED FUNDS: 100
TARGET MARGIN: 50%

Thanks for your post to add more clearance as we get nearer to time :slight_smile:
So I entered data into both calculators and results match spot on at default 50%
However,
Changing the TARGET MARGIN figure, the results do not match and below are the actual results I got on 2 entry examples:

ACCOUNT VALUE: 59370
BLOCKED FUNDS: 24182

On Richard.W calculator-
TARGET MARGIN: 49.5% gives result of- Ā£480.45
TARGET MARGIN: 49.3% gives result of- Ā£238.63
On obrienciaran calculator-
TARGET MARGIN: 49.5% shows result of- Ā£0
TARGET MARGIN: 49.3% still shows result of- Ā£0
In fact, it shows Ā£0 result from 49.4% and below. 49.6% shows Ā£601.36- It seem to skip the 49.5% when trying to move, it jumps from 49.6 straight to 49.4 and I have tried a very fine move/adjustment.

I hope it doesnā€™t add more to the confusion and Thanks again!

Hey, Iā€™m just wondering how long will this Margin change be for ?

Can you give some sample numbers and expected output and I can check that.

If you are calculating via @David post, it will be different as he is taking a simpler method!

Thanks for taking the time to test the calculators and provide feedback. Weā€™ve spotted similar issues ourselves, which is why we shared the new calculator. Weā€™re looking into the discrepancy at the moment.

Hey, just wondering if the leverage change is still going ahead tomorrow as it says nothing on my ā€˜notificationsā€™ on the app

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