Sick and tired of cfd buy qty restrictions

This is correct. There are no hidden fees on losses.

This however is not correct.

As Richard mentioned, T212 can potentially offset a long customer and a short customer for hedging and balance. Where this is not possible, they must hedge themselves and they don’t have infinite money to do so. Hence forcing some customers to close their CFD positions and accounts. They can’t have these perma-winners eating up the financial float they need to service other customers; customers hopefully leading to a more balanced hedge and freeing of funds. And ultimately more customers = more money.

closing the positions makes no mention of the clients profit or loss, this is an assumption on your behalf. hedging also isn’t 1 client to 1 client. it’s volume against volume. 1 long may only be £2k but 10 shorts together may be £1.8-2.2k. Interest paid by 1 client on their long position will mostly go towards another client as earnings from their short.

but the way you keep talking about T212 makes it seem as if they are 10x more profitable than reality and will kick you out if you are a successful trader. their business model relies on transaction rates. the more transactions made, the more they earn thanks to the spread. long positions held indefinitely are not trading and don’t make them much of any money regardless of which direction the position goes.

not only are markets volatile which make it hard to manage risk, you have positions that won’t close that prevent T212 from doing so effectively. this link speaks of forex in particular, but is a good answer that it’s “not personal” it’s the instrument as a whole and if you are a valid trader, the broker will keep you on board…

https://www.quora.com/If-you-make-consistent-substantial-wins-in-Forex-does-the-broker-throw-you-out

It’s to do with available funds on T212s side. Not an assumption, just basic maths! They don’t have infinite money so need to get it from somewhere! Part of that solution is closing CFD accounts.

This is exactly my point. But they can’t support additional transactions if they don’t have the funds to over leverage, cover risk etc. Again, closing CFD accounts is part of that solution. Also restricting new positions etc.

Again, exactly what I’m saying. It’s very difficult for them to manage risk, especially with these perma-winners long term holding. Again - part of the solution is to close these accounts, free up finances, and take on more customers/transactions.

Whether a client wins or loses isn’t the same as being long or short.

Winning or losing doesn’t matter to t212 in terms of making money - the only thing that matters is being able to hedge against the position (or offset shorts vs longs internally). If they can’t cover the exposure then they can’t allow CFDs (as you’ve essentially said).

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True

The problem as you say is being able to cover the exposure indeed. At the moment the market is seriously bullish, everyone is going long, and making bank in the process. This just isn’t sustainable for a broker.

Anyway I feel at this point we’re all arguing the same thing!

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Hi @Team212 May I ask what’s your desk dealing policy please? Tried to search for it but I couldnt find it on your COI policy. Thank you.