I donāt think anyone is gaining from this, a few clients positions may have increased substantially during the period T212 were unable to hedge which has meant T212 liability and/or exposure is above the allowed limits. Their only option now is to force clients to close positions via increasing margin req which they are within their rights to do but 24 hrs notice isnāt fair.
This is all speculation ofc, but Iām not buying the extreme volatility excuse.
than I read it like it will influence your open positions too. So, if my current open position is 1:5, thatāll become 1:2 as well, meaning I will have over half less profit. Please correct me if I understand wrong but are you saying that any stock purchased at 1:5 will remain 1:5?
Can somebody who doesnāt work for Trading 212 please explain if there have been any recent āmarket conditionsā that couldāve forced T212 into these actions today at such short notice?
Are they responding to a past event or a predicted future event? I donāt follow the markets closely so Iām genuinely in the dark.
Iām sick and tired of T212ās vague statements with no details whatsoever.
You will not have half less profit! To keep the position you will need to deposit 50% notional value of the stock rather than 20%.
If you have 10 x Ā£50 shares currently you require Ā£100 in margin, later today youāll require Ā£250 in margin, position will be auto closed if you do not have the free funds. The P/L of the position is unaffected.
Okay, so in my case, I have 73% at the moment. Thatāll remain 73% and nothing of mine will get automatically closed? Because Iām still above the 50%?
I think December is just like February. No one knows what will happen. But just like in February all Instructional Investors have already stopped trading and are waiting. And most Retail Investors are still betting the market (and economy will go up) but all signs show it is going down.
There is a guy at Bloomberg (Tom Keene) who has been saying for a month now that in 30 years of reporting news on the financial markets has never seen a period like this. One that does not make sense. All technical indicators are showing down but the market keep going up.
An example is the famous Tesla. No matter how much of a fan you are it does not make sense that it is at almost $600. The market used to be logical and based on technical indicators. Now it is like betting at the track.
I see this as a clear indicator that T212 is not just afraid but very afraid of a bubble in the market and that it might pop
This is how I see it. Might not be 100% accurate
[EDIT]: This does not excuse the 24 hour notification
I agree with you but thanksgiving has been set for quite a while, I reckon T212 should have know about this for a while. Thus giving people 24 looks very bad.
T212 are showing to be unprofessional (no comms other than a warning in the platform that people will see too late) and unprepared.
I love T212 and will stay on but I believe they need a massive internal review, share their findings, outline the steps theyāll take to avoid a similar situation in future and replace the people that caused this situation.
Yes and no. As mentioned here I believe there might also be a liquidity problem. There are too many print screens here on the forum with people having their account at 90-100% blocked funds. Also too many users that have bought equity share and hold them for way too long. CFDs are not meant to be used as hold long instrument.