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

No T212 doesn’t make more money from customer losses.

T212 makes money from the spread for CFDs (not invest or ISAs). T212 tries to hedge against the trades that customers make - if they are not able to hedge due to market volatility (and if they don’t have large reserves) then the only way they can reduce risk is increase the spreads and swap rates and reduce the leverage margins.

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If you have time, would you mind explaining how hedging works? That’s a definite gap in my knowledge.

Let’s be honest we all in this boat together and we could help each other whether you are an investor or you work for 212 we all want to make money this whole thing is about money. We have a great platform and absolutely fantastic support with brilliant community. If 212 goes down for whatever reason then we all loose simple as that! so I believe that we should start petition or some sort of vote and pay monthly fee to 212 in exchange 212 will notify us about any changes in advance, this will keep them going and makes us happy as we won’t be worried. I suggest between £10 to £20 per month and in exchange we would like you to mention more things to us in advance.

Remember guys just because we spoke they listen, maybe they struggling with money so let’s help this isn’t just theirs platform, your money is on it so £10 or £20 a month is nothing comparing to the earnings you can make.

I opened T212 accounts for both my wife and me in April this year.

Since then, I’ve paid £6,312.06 in swap interest and my wife has paid £4,424.08. A lot of that interest was for cryptocurrency positions, which were forcibly closed with very little notice (just over a day) and for questionable reasons.

So, no thanks, I won’t be paying an additional £10 or £20 per month.

In fact, I suggest that everybody should go to Reports | Interest and post on here how much swap interest they’ve paid and over what period.

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So one more question, now positions will close if my margin is 25% or less, after Monday it will close under 50%? And the formula to calculate margin above 50% is somehow that I can never stay above 50%, if you can help me out, I got 20000 shares which price is 0.72p, the blocked fun after monday for that would be almost 7200£, with formula for margin above 50%, my margin would be 53% ?! It means 212 is forcing me to close although I‘m in profit and with a little volatility it will close my positions! The least you can do is to take the same formula for above 50%, total fund/priceamount0.5.
Did I get it right?

Does the calculator help you?

CFD Calculator for leverage change

I‘m on edge which I don‘t want to be, I‘m exactly at 50% which is unfair, they are forcing me to close my profit making positions!

Did you try the calculator?

Can you share your ACCOUNT VALUE and BLOCKED FUNDS?

Do you only hold a single instrument in your CFD portfolio? Is it definitely a stock?

I don‘t care about privacy anymore, I got 8300total fund and 3200 blocked now

Is your margin percentage showing as 72% then?

Yeap that‘s it, after monday it will be 50or less

NOT FINANCIAL ADVICE

After the margin change, I think your margin percentage will be 51%. You will still be a long way from a margin call at 45% and your positions closing at 25%.

Also, because the leverage margin is increasing from 20% to 50%, it will take a bigger swing in the stock price to lower your margin percentage.

However, if you want to restore your 72% margin, you would need to add £12,450.

Remember that any margin over 50% is the equivalent of adding funds, investing them all and making some gains. I’m no expert but it seems like you’re worrying unnecessarily.

Does that all make sense?

I did‘t get it, 25% is closing percentage or 50?

The 25% position close figure remains unchanged.

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But it is already at 25% so what will change?

Perhaps I’m misunderstanding you, but I think the only thing that’ll change from you is that your margin percentage will drop from 72% to 51%, bringing you 21% closer to having your position closed at 25%.

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As far as I understood, I thought the 25% will change to 50, I‘m really frustrated here :expressionless:

What made you think that?

This line of announcement „ The leverage will decrease to 1:2 meaning that the margin requirements will be 50%. That means you will need 50% of the total value of the trade to guarantee your positions“

Sure - hedging is any form of investment to counter against risk. In this case T212 is trying to hedge against the risk of the positions taken in CFDs by their customers ie what is the worst case scenario of all their customers getting their CFDs “right” and T212 having to pay out.

In a more stable market you might find that customers take out some short and some long positions ie you can use the customers positions as a hedge, but if all the customers go one way you might have to find an alternative way of hedging (again the more difficult the market the more difficult or costly it might be to find that cover).

So if the risk scenario goes above a certain point then T212 has to take the action they’ve taken.

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