Apologies if this has been covered before, I have looked before posting.
Again this morning despite having thousand on the platform I am limited to only be able to buy 0.1 gold, Silver isn’t a problem, Just Gold. This has happened again and again for me from shares to commodities on CFD.
Can someone shed some light on the reason for this please. And again sorry if this has been covered but i haven’t been able to find a good reason as yet.
The maximum quantities of the CFD instruments are dynamic. They are based on risk evaluation that we conduct quite frequently.
We have to adhere to regulatory requirements regarding capital adequacy, which set limitations regarding the exposure to each instrument.
Thank you for the prompt answer.
I can’t buy stocks anywhere, from around December 10 All stocks are limited for me, is there any way this can be fixed? it’s very annoying.
Hi - is this the same reason I am not able to buy UK 100? It keeps telling me my pending orders are being cancelled due to insufficient funds. I have plenty of free funds for the trade…
when is this likely to end though? been over a month without being able to trade
@Katherine That is the case, yes. The current maximum quantity for long positions is 3 units. If you are already holding 3 units or more, you will not be able to open further long positions.
@Jameshall1232 Unfortunately, I cannot provide a time frame. The situation is dynamic.
Yes it’s pissing me off too; dynamic or not it doesn’t make sense. T212 is meant to be a TRADING platform, i.e buy & sell. At the moment I’m holding onto positions long term, that I would otherwise close for trading purposes, because I can’t be sure of being able to reopen them. I’m having to trade over multiple platforms now which makes it more complicated.
They should only reduce the qty to non-profitable trades.
I could not buy apple on a dip only to watch it go up, same with MSFT and visa. I am a profitable trader and have been since I started trading on this platform, why am i being restricted because there are some that don’t know what they are doing?
The only way to get around it is to buy Nasdaq100
not at all, the people who don’t know what they are doing will more than likely fall into the 80% that lose which is good for T212 as its money in the bank. The reason its being limited is because T212 is limiting their potential losses from successful trades
Continuing the discussion from Sick and tired of cfd buy qty restrictions:
Like many others, I have over £10.5k in balance but for some unknown reasons Trading 212 is not allowing me to buy or sell even 0.5 a barrel of oil. Each barrel is about $53 right now. I have tried over and over again - only to face setback! Could have earned reasonable profits! Why such restrictions!
can we not keep repeating this falsehood. whether a client wins or loses is irrelevent to T212 earnings. the 80% who fail are profiting the 20% who don’t. that is how the market works.
the limitation are because of an imbalance in positions at large that prevents T212 meeting its risk exposure requirements in accordance to regulations.
How’s it falsehood? Your trying to tell me T212 does not benefit from users losing money in CFDs? Free service on Invest and ISA so it’s only natural that T212 makes their money from CFD section.
Why would you need a target audience if not to get from them?
Not correct. Think if all customers kept going long and kept profiting, (which is basically happening now with this massive bull market and bubbling tech sector), T212 will eventually run out of money to provide that leverage.
We see CFD accounts being closed for this reason.
Because, as far as is publicly available, 212 only make money off spreads and swap fees
They do not make money off individual client positions losing because they hedge every client position. So if someone takes a long, hopefully there is a matching short position to produce a net zero or if not, 212 have to go out and hedge that exposure themselves. Vice versa for a short.
I’m sure there is info on this operating model in their annual accounts.
Yes they may well use the funds that ones lost to hedge against another that’s winning but, there’s still fees and commissions attached to those also and we have crazy spreads and all the rest of it. No point really getting into it as we’ve been asking for information in regards to it but hasn’t been released yet.
Why trading crude oil is disabled from the CFD platform? Brent also cannot be traded even if there are some contracts listed - message I have is: “The max quantity you can buy i 0”.
Risk management from T212. Have a read on this forum. Lots of posts on the topic.
Not quite as simple as that.
Try huge spreads and counter trades filling up order books to artificially inflate spreads in order to keep longs or shorts suppressed in order to protect risk exposure ranges.
except it is that simple. the increased spreads are up to T212 and are part of the risk management, but those are fixed earnings, it is market conditions and client activity that determines the price of the CFD beyond that point. there are no hidden fee’s that net T212 more money if you as an individual make a loss. just read their annual report for 2019.