Reduction in T212 quantities

Yes

No, you just won’t be able to buy anymore.

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Another unfortunate outcome of this maximum position size risk management policy is that I and many others cannot average down in the stocks we have, especially the investments we have the highest conviction in and are willing to take a risk on.

This puts us the customer at the risk of losing money. I’m not sure if Trading 212 has even considered this, or even cares.

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You could average down on another platform, which only encourages 212 users to potentially exit. Not that it effects me but I don’t get the rationale.

If we were to consider holding large positions in illiquid stocks similar to gambling, then yes potentially limit the user.

I still think there should be a warning to the user instead. In the app, your position shown as a % of the average daily trading volume should be shown. The user can then decide if they are happy to accept the risk it may take several days or more to sell out a position.

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You could average down on another platform, which only encourages 212 users to potentially exit. Not that it effects me but I don’t get the rationale.

Are you suggesting transferring the positions away from Trading 212? Trading 212 do not support that so I don’t see how I can average down on my original investment with another broker. Buying more.shares with another broker may average across the 2 accounts, but that’s not the point I’m making as you’d still limit your potential upside by the loss on the original.

For example, you could average down on a stock and if there’s an unexpected run in the SP, you could sell out to break even and get all your money back or come out with a profit.

It’s not uncommon to hold large positions in biotechnology stocks that eventually get acquired by big pharma. Limiting my ability to average down means limiting my potential upside. Companies could also get bought out below your average and you’ll lose money, but if you had the ability to average down, you could emerge break even or profit.

If I’ve done my DD and choose to go heavy into any stock, it should be my choice and not my broker to decide how much of a stock I can buy. If I was using a margin account, that’s different.

You call holding large positions in illiquid stocks akin to gambling but that’s your opinion and stocks don’t always remain illiquid.

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Well, averaging down on a single broker or 2 has the exact same effect. You aren’t making less profits if it’s on a 2nd account. Your initial purchase at a worst price doesn’t magically get better, only the average position is green, not each underlying purchases.
The only difference is in one case, you actually see that some your purchases are still red, while on the other you get copium pill that “it all shows green”.

But in the two brokers case, you seem to forget your green position on the 2nd broker is yielding a greater profit, and the average return between the 2 will be exactly the same as the return on the average position. :upside_down_face:

But in the two brokers case, you seem to forget your green position on the 2nd broker is yielding a greater profit, and the average return between the 2 will be exactly the same as the return on the average position.

I get your point, yes and no, it’s not that black and white as there are implications of using different brokers which limit your actual take-home. For example, if you’re in the UK using an ISA account with Trading 212 in one tax year which prevents you from having another stocks and shares ISA within the same tax year. Assuming you exit a position in a stock for whatever reason this tax year with profit, in the case of the ISA you pay no tax on the profits, but in the case of your account with the other broker, you will. Your potential upside is thus limited.

In an ideal world, this shouldn’t even be a conversation piece. I’ve used / use a decent number of brokers, including Interactive Brokers who these guys use as an intermediary. No other broker has this kind of risk management policy for what equates to a “cash account” with limits on how much of a stock you can buy.

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8 posts were merged into an existing topic: Capital gains tax

You’ve got £12,300 CGT limit before tax though. That’s worth using if needs must.

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Yep, I’m fully aware of that and will use every penny I can squeeze from the CGT limit. As I said before, all this mental gymnastics shouldn’t be necessary with the freedom to trade the markets as I choose.

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This right has not been taken away from you.

This right has not been taken away from you.

I would class limiting the maximum position size I can hold of a stock as impinging on my freedoms for my Trading 212 account for all the aforementioned reasons, but in general, you are correct, I still have my rights.

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Couldn’t agree more!
In fact this is exactly why I am forced to open another brokerage account. I chose Interactive Brokers

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Tobacco companies don’t restrict the amount of cigarettes you can buy, they just pop a warning on the packet suggesting smoking is bad for you and could cause cancer…

212 should do the same, ‘warning this instrument has low liquidity, you may lose money investing in this company’

Boxes have been ticked, everyone is happy, Keep it simple.

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That would be nice if that was the problem

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Basically T212 are encouraging day traders to stay away from joining 212.

Averaging down is an important part of day trading and with this limits etc it makes it hard for day traders to join T212. You don’t have to come here and request hey guys I want to average down increase the limit lol

In U.K. there are no real alternatives available yet but I reckon very soon we may have a platform that offer better service to t212

Check Freetrade mate

Is it? I thought the whole idea of day trading is to do your buying and selling then close out your positions by the end of the day rather than average down.

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Nah you’re clearly doing it wrong :rofl:

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Any chance @Michael.M , @B.E , @Bogi.H to increase CLIG (LSE) limit please?

Hi, I bought BOIL on 6th Oct when the limits were (I believe) Max order 1,000,000, Max Position 5,127,595. Now the share has risen dramatically the limits seem to be 100,000! (why such a massing reduction?) Now I can’t add more or take the profit without setting up 10 individual sells. Couldn’t the max sell be set at the level of your holding regardless of the max order value?