CFD 'Margin Call'/'Positions Will Close' Calculation


New to CFD trading and trying to calculate the ‘margin call’ stock price and ‘positions will close’ stock price for a spreadsheet. I’ve read the recent threads with the BTC example yet can’t get my head around the margin figures, despite the formulae being there. Status wise I’m getting my head around but with the £ to $ conversion integrated it becomes slightly more complex to consistently alter on a spreadsheet.

  1. Over 50% -> [Total funds / (Total Funds + Blocked funds)] x 100%
  2. Under 50% -> (Total funds / Blocked funds) x 50%

Any help please? I’m just trying to understand when to get out to prevent the automatic close out, at the 25%, in terms of instrument price and total loss, hence the request.

Thank you!

Just limit your position size. Don’t overtrade your balance. I usually try to open a position with 65-70% margin left. When market turns against you, you have some room to let it go (if you are confident it will reverse in your favour later), or take your loss.

I have to an extent, however I just wanted to figure out at what point it’d automatically close you out in terms of the 25% with regards to relevant instrument price, enabling me to calculate the loss expected, if that makes sense?

In very simplistic terms, if you have a total in your account of £100 and buy a stock for that £100, the account status would be 50%. Does that mean at £90 (45%) it’ll notify of a margin call to request more money, but will continue trading as is, and at £50 (25%) Trading212 will close the position to prevent any further losses, so you ultimately go home with 50% (£50 in this case) rather than nothing? All provided the entire £100 balance is used towards the instruments. Is my trend of thought correct on that with regards to the Account Status, or am I far off?

That is what I said earlier. Reduce your position size. When you drop back 25% in margin, you are on a big loss already. Normally you would have closed your position or let a stop do its work.