[CFD] Upcoming Increase in Margin Requirements - postponed for 01.12.2020

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 don’t 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.

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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%.

Literally buried in their help section and only stumbled across it.

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This is… not good. Luckily I’m mostly safe, until they decide they want to do this for commodities etc.

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Is this for existing positions as well? or applicable to new positions only?

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What they mean with „…extreme market conditions…“??? What qualifies this?

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Who knows. I doubt they’ll expand further on that.

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 don’t have enough free funds. Margin requirements on indices, commodities & currencies will remain unchanged.

Yes unfortunately does apply to open positions so If you can’t increase your free cash significantly and you are are in the red your account will be cleaned.

Extreme market conditions they have created by overexposure

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Can someone give out an example as I don’t quite get it

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Seeing as it was obvious this was going to happen, it would have been nice if they’d warned us about this before an American holiday. They’re leaving us almost no time to manage our currently open positions. Heh.

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How does raising margin requirement affect current position? Does it mean my profit would cut in half?

So I lost half part of margin? And about my negative positions? Maybe I clean all my account and remove all money from here!!!

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No it’s 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

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Well that’s a bit dirty by them, could have given a weeks notice… Just found out today… Fk em, I’ll be closing my account and going elsewhere. :angry:

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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.

Let’s face it Bill Ackman just opened another short position on the market. Last time he was right so I would not bet against him.

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As a new trader I apologise if I am asking stupid questions but I am confused:

I currently have invested around £600 into stocks, my current balance stands at around £1800 - my free funds are £906 and my blocked funds are £976.

I own around 200 stocks at roughly £20 a share.

Does this mean all positions will be close apart from 30 due to the leverage?

Any help appreciated, Thankyou

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This will apply to existing positions.

Have you brought these on “cfd” or “invest”?

It means you’d be best closing your trades whilst in the green as once the new margin hits your gonna effectively lose your funds as you can’t cover the price with what’s in account balance and most likely get stopped out.

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