Working out Margin Requirements Thread

[Richard.W]

Check out this post.

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

Let me try to help explain. Suppose we are talking about the 1:5 margin requirement. So the Blocked funds amount is initially 1/5 the value of the opening value of the stock. As the value of your shares rises or falls the Blocked funds amount must also rise or fall by one-fifth the amount. If shares are up 5%, then Blocked funds go up 1%. This has to happen, otherwise the margin indicator value would change simply by closing the position and reopening an identical one (ignoring effect of spre…