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Margin Requirement Discrepancy - CFD Calculation


Guest SerArthurDayne

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Guest SerArthurDayne
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Hi,

Does the calculation for margin requirement change with position size? If so, does anyone have the calculation? I've used the existing data from IG which gives the exact margin requirement up to 170 CFD contracts. However, if I increase the position size from 150 contracts to 180+ contracts, the margin increases substantially. I'm using the exact same formula between the two and the only change is the quantity of contracts. Does the margin requirement increase past a certain threshold of contracts (i.e. any order size greater than 180 contracts has a margin requirement of 0.7% - as opposed to the previous 0.5% for FTSE 100 index options)? I've looked everywhere on IG and can't seem to find anything. It seems that anything past 180 contracts, the previous formula fails to give an accurate margin, despite the only change being the quantity of the order. To confirm, I'm looking specifically at FTSE 100 put options. I sold 40 contracts and the margin calculation is exact, but if you increase the order size from 40 to 180+, the margin calculation breaks down. I'm obviously missing something but don't know where it is. I hope somebody can help. 

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