Due to extreme market conditions, Tuesday, the 1st of December 2020, at 14:30 GMT, we will temporarily raise the margin requirements for all CFDs on stocks to 50%. That means the existing leverage will decrease to 1:2. If you have open positions with stocks, this will affect your account margin level and may lead to the automatic closure of one or multiple positions in case you donāt have enough free funds. Margin requirements on indices, commodities & currencies will remain unchanged.
Unfortunately, hedging is becoming more difficult & expensive by the day so this has become necessary.
An increase in margin requirements will not affect running/open P/L.
How many accounts is this going to wipe out tomorrow?
Due to extreme market conditions, tomorrow, the 27th of November, at 15:30 GMT, we will temporarily raise the margin requirements for all CFDs on stocks to 50%.
That means the existing leverage will decrease to 1:2. If you have open positions with stocks, this will affect your account margin level and may lead to the automatic closure of one or multiple positions in case you donāt have enough free funds. Margin requirements on indices, commodities & currencies will remain unchanged.
Yes unfortunately does apply to open positions so If you canāt increase your free cash significantly and you are are in the red your account will be cleaned.
Seeing as it was obvious this was going to happen, it would have been nice if theyād warned us about this before an American holiday. Theyāre leaving us almost no time to manage our currently open positions. Heh.
No itās for existing positions also lol this just gets better!!! High spreads coupled with now gonna alter margin is undoubtedly gonna cost US the end user a great misfortune and puts funds into the bank of T212. This is becoming a stick up without the guns
This is so bullshit. Why did they increase the margin ratio?? Probably they want to wipe all to earn bunch of profit.
Trading 212 is crab. They set up rules by itself in the way to benefit them.
Never seen this happen before
How I have understood it is a lot of retail investors driving the market (most institutions have stoped trading to keep their profits intact for the end of the year). All of these retail investors keep moving the price only up (too many long positions) or only down (too many short positions) and have gotten to a point where the bubble will pop or hopefully hold. But I think everyone that is part of the market is trying to move into a safer position so if it does pop then they are not affected.
Letās face it Bill Ackman just opened another short position on the market. Last time he was right so I would not bet against him.
As a new trader I apologise if I am asking stupid questions but I am confused:
I currently have invested around Ā£600 into stocks, my current balance stands at around Ā£1800 - my free funds are Ā£906 and my blocked funds are Ā£976.
I own around 200 stocks at roughly Ā£20 a share.
Does this mean all positions will be close apart from 30 due to the leverage?
It means youād be best closing your trades whilst in the green as once the new margin hits your gonna effectively lose your funds as you canāt cover the price with whatās in account balance and most likely get stopped out.
