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

They are horrible ! They should have least provided a way to work out how much you could need

3 Likes

assuming that all open positions have 1:5 leverage then you have open positions with total sum of:
5*4895.16=24475.8
now, in order to maintain the same sum after reducing the leverage to 1:2 you need 12237.9 to be blocked. since you have free 5773.39, you will need additional 1571.35, to maintain the all positions.

2 Likes

We need more time and a guide

2 Likes

Can someone at 212 provide us with a way to work out what percentage of margin (the green bar at the top) we will need before the cut to stay safe? I.e does it need to be 85% + ?

1 Like

Omg you are an angel :sob::sob::sob: Thank you so much. Now debating whether it’s worth funding my account or just closing a few positions to clear funds

and give us time to plan an exit if lower than that %, not 1 hour market time with a frantic rush and crash from everyone selling or getting positions closing and a mass volume in here and support

1 Like

the rule for the calculation is the following:

  1. you find what total amount of trade you have in open positions. e.g 20 NIO stocks at 53$ = 1060$
  2. until now in order to maintain position worth of 1060, you needed 1/5 of that sum to be blocked which is 212$. This should be displayed in your blocked funds. Basically, to find the total sum assuming you have only 1:5 leverage instruments you just multiply blocked sums by 5.
  3. In order to calculate sum to maintain all positions you need to divide the total sum by 2, as the leverage is decreased to 1:2. It means in order to maintain our 20 nio @53, we need 530$ blocked.
  4. now if you have 200$ free funds, you need to top up at least 330$ in order to not hit margin calls.
6 Likes

RIP my trades due to 1 hr to plan my exit :rofl: dont understand why we’re given such short notice

3 Likes

How to lose a client base in 24 hours - will be a great case study.

10 Likes

@David Hi David, this got me worrying a bit, could you please clarify for me, my profit will not change due to this margin change, will it?

Will I loose any profit I made using 1:5 margin ? Because it will be turning to 1:2.

I have a 5 figure portfolio so I’m extremely concerned I also want to know how long this may last? The 1:2 margin.

Thanks a lot in advance

3 Likes

Don’t want to imagine the amount of people appalled tomorrow, withdrawing all their funds and installing maybe their main competitor, Etoro.

3 Likes

Hey man, will this affect my profit I made 1:5 margin? Could you help. Many thanks

1 Like

I’m below this but my account is a healthy 75%, is that alright?

Does this take into consideration if positions are at a loss already? Presumably so…

Sorry my question was does it affect the profit I made using 1:5 margin? An example of work out would be extremely helpful by someone. Many thanks

This change does not affect profit. What will happen is you will require more margin (blocked funds) to keep the position open. If you do not have enough it will simply automatically close and profit go into your free funds. See the example calculation kindly shared above to work out the amount you will need to make sure is available in your free funds to ensure the position does not close.

But profit is not impacted by this issue.

If you hit margin call, all the positions that you have will clause in descending order based on the blocked amounts (margin). So, for example, you have one large position, and a few small, then firstly the large position will close regardless of the profit/loss, and if the rest of your small positions are covered with new leverage then they are not going to be closed. Positions will clause with the market price at the time when they apply that leverage switching.

1 Like

So it’s based on the buy in price of the shares? Thanks ! :slight_smile:

1 Like

Looks like i’m gonna have to sell my WKHS to avoid margin call on PLTR, very frustrating

2 Likes

Oh that sounds good to me, also the minimum margin will stay at 25% as always?

Also how long you anticipate the 1:2 margin to stay in place? I know you can’t give an exact answer , perhaps if you could say days/ weeks or months please.

Many thanks