This line of announcement ā 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 positionsā
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 ārightā 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 theyāve taken.
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I agree with the comments @Supraman has made.
The problem is that the word āmarginā has 3 different meanings in the CFD platform. Itās a bit like āHodorā or āStationā! 
That statement just means that instead of having to pay a fifth (20%) of the value of your positions, you now have to pay half (50%).
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This is a good point. The word āmarginā is sometimes used to mean the blocked funds that one has to allocate from free funds to open and maintain a position. But it is also used to refer to the margin indicator number between 25% and 100% which appears on the screen and which is used to trigger margin alerts at 45% and position closing at 25%. This is a bit confusing since these āmarginsā are not the same thing.
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And the third meaning is the percentage that determines āthe blocked funds that one has to allocate from free funds to open and maintain a positionā. So the margin determines the margin!
You can see this use on the āInstrument detailsā screen. This is actually whatās changing from 20% to 50% for stocks on Tuesday.
Perhaps we need new terminology to avoid ambiguity. What about:?
- Leverage Margin Percentage (changing from 50% to 20% on Tuesday)
- Position Margin (an amount of money, not a percentage)
- Margin Indicator Percentage (45% = margin call; 25% = positions close)
Or the two percentages could be Margin Percentage and Margin Indicator Percentage respectively.
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Of course 212 aint gonna be taken to the cleanersā¦Me thinks many here should not be trading CFDsā¦
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Hi,
i really hope someone could help me here, after the leverage change to 1:2. what is the minimum margin required to keep positions open (i know it was 25% previously). is this changing to 50% or still remains at 25%.
Many Many thanks
-on worried guy.
I asked the same question couple of post above and seems that remains unchanged
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Hi there,
those margin numbers we see on our screen , which triggers the account to start closing positions below 25%. is that changing too? or will it be 25 % still?
Many Thanks
this is keeping up late night buddy. is it better to clarify with t212. because one wrong judgment means we going to have our positions taken out
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I think that distinction of language and terminology would be helpful, but I guess it too subtle to catch on, and then to be used carefully and accurately by everyone who writes on the forum.
Some people will always like to trade in CFDs without wishing take time to understand that blocked funds can change as value of position changes or learn how the margin indicator percent is computed. Mind you, these facts could be more clearly set out in the official help pages. I learned these things only by reading certain posts of staff.
This event of leverage going from 1:5 to 1:2 (on shares only) has flushed out how many people there are who trade CFDs with only a hazy idea of how they work.
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Me too. Itās certainly not obvious.
That is certainly true.
So basically my available funds and account balance will go down unless I withdraw, currently have a margin of 60%
Your available funds (FREE FUNDS) will certainly go down but I donāt think your account balance (ACCOUNT VALUE) will.
If you only have stocks you should try the calculator.
Because most are in red. Iām in loss on most trades with 56% margin. Good they postponed until Tuesday but not any good when you need to top up your acc with 18k and the money you have here are the only funds youāve got. Would be fair if they didnāt apply it to trades that are in losses
With the view of creating clarity on this topic, I feel it may be in everyoneās best interest if a new thread is created with consolidated information, making the new margin requirement transition as simple as possible.
As this thread is approaching 900 messages, it will take the average person too long to get crystal clear information.
I will keep this thread open for any who wish to browse, but new consolidated info will be put into the new thread.
The new topic thread will be posted below shortly.
NEW Topic - Click Below :