Jump to content

When will my position be closed?At a margin call level of 100%?

Recommended Posts

I am demo trading  on IG and getting familiar with the platform, however I see a mixed message about when positions get closed automatically if a margin call is triggered.


On the platform next to Balances there is the percentage of the Equity Used by Margin. It is saying that my positions could be automatically closed if this reaches 100%.

From the screenshot that I have uploaded the Equity Used Percentage of 89.38 % is calculated by ={Margin (£1775.65) / Equity (£1986.58)} * 100

So if the Equity Used reaches 100% my positions or at least one will be closed.

However, if I am looking into the IG Help section I find this page https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/margin/what-is-margin-call that says 




When will my positions be closed?

Standard trading accounts will be triggered for position closure when your equity drops beneath 50% of your margin requirement.



I found an example about it in the forum 



If you had a £5000 starting balance and opened a position with a margin of £300 the following would happen.

At a loss of £4701 (99%) we would aim to send you a notification email.
At a loss of £4775 (75%) we would aim to send you another notification email.
At a loss of £4850 (50% margin, i.e. the market has moved against you and your loss is equal to your spare cash you had on the account, plus half the margin) we would start to close positions.
Your account would be left with £150 (50% of the initial margin used to open the position).


The two scenarios are very different. Yesterday, I actually reached 100% of Equity Used but my positions did not get closed, although I am demo trading, then I am wondering what would happen in a real trading scenario. (and actually I would like to understand it before start trading it with IG).

So which one is the margin call policy of IG?

Many Thanks!


Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 27/01/23 19:31
  • Posts

    • I am a beginner, and I must say, there are a lot of rules to the trading game that one must abide by if they want to be successful.   Here, the writer mentions several basic rules for day vs swing trading.  However, I find that often times, the reasoning for these rules is not as  obvious for a beginner as it may be for an expert.   The 'why' factor if I may. For example, why must you have a large capital to trade with as a day trader? Because your positions must be large so that a small change in price will be augmented and turned into a large profit. Also, with such high risk, the margin will be specially high, given the trader is taking up large positions at a time.  Without a large amount of capital, positions may be forced to close due to funds being below margin requirements.  When this happens, you can expect to lose tons of cash, fast.  I learned the hard way. All the best, David Franco      
    • USDJPY has been regaining ground this week, but inflation differentials and a three-month trend signal the potential for another turn lower Source: Bloomberg      Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 27 January 2023  USDJPY set for third monthly decline The USDJPY pair has been on the slide since its October high, with the historical 147.63 resistance level ultimately marking the end of the dramatic 21-month rally that saw the pair gain almost 50%. Much of that came through a period that saw US inflation soar as Japanese prices remain subdued. That disparity remains, but the direction of travel has certainly shifted as US CPI declines and Japanese price growth gradually ticks up. The overnight 4.3% figure for Tokyo core CPI represents a four-decade high, with the nationwide figures likely to follow on. The chart below highlights how USDJPY has been heavily correlated with the now tightening gap between US and Japanese inflation. However, it is more evident when shifting that inflation differential forward by seven-months. That close correlation highlights the potential for further downside as long as prices continue to trend in a similar manner. Source: ProRealTime Looking at the daily chart, the recent rebound has taken price up towards the top-end of a descending channel and Fibonacci resistance. This highlights the bearish pattern that has been playing out, with lower highs and lower lows in place in recent months. Unless we see price rise through trendline and 134.77 resistance, another turn lower looks likely for this pair. Source: ProRealTime
    • @MongiIG Hi - You recently covered Long NICKEL Trading the Trend and A. Rudolf did this morning but I see it is Closing only. Please clarify, Thanks D600
  • Create New...