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Funds available -£21,000


ccss

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I am using a practice account and not actually investing any money.  It says profit loss -£20,000, margin £12,000, available -£22,000.  If I had a live account with real money would this mean that I would be over £10,000 in debt to IG?

This is the main reason I don't want to use real money.  I don't mind investing £1000 and losing all of it, but I don't want to be in debt on top of that.

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from my understanding, this depends on your country and account type. 

If you are a retail trader (not professional) and based in the UK then you are protected from a negative balance:
https://www.ig.com/uk/help-and-support/accounts-and-statements/my-accounts/what-happens-if-my-account-goes-into-negative-balance

You may find the following link useful:
https://www.ig.com/en-ch/margin-calls

When your equity value drops below your margin value, thats when your trades are at risk of being closed out.
You can see your equity and margin values at the top right of the screen when you login to your trading account. Keep equity above margin and you'll be fine.

Hope this helps.

 

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39 minutes ago, ccss said:

I am using a practice account and not actually investing any money.  It says profit loss -£20,000, margin £12,000, available -£22,000.  If I had a live account with real money would this mean that I would be over £10,000 in debt to IG?

This is the main reason I don't want to use real money.  I don't mind investing £1000 and losing all of it, but I don't want to be in debt on top of that.

Short on details but margin and account in £s means your demo account is either spread bet or cfd and you are in the UK?

So you have a position on that you have watch sink to a £20,000 loss. Why?

Actually a UK retail account has negative balance protection so IG would have closed out the position even before it went negative. Thought the demo would have done the same but sometimes the demo slips up. You can be sure the broker makes sure the live account won't, it would cost them too much.

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I don't understand how it can get to -£20,000 when I started with £10,000, all my shares have gone up in value so £12,000 looks right to me, I didn't get the -£20,000 because I don't understand how a share can get to a negative value, I thought £0 would be the lowest possible.  I don't understand how this thing works, I just thought I was buying normal shares.

 

It is a spread bet account.

Edited by ccss
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On 06/09/2021 at 10:08, ccss said:

I am using a practice account and not actually investing any money.  It says profit loss -£20,000, margin £12,000, available -£22,000.  If I had a live account with real money would this mean that I would be over £10,000 in debt to IG?

This is the main reason I don't want to use real money.  I don't mind investing £1000 and losing all of it, but I don't want to be in debt on top of that.

Hi the formula is:

Available = Funds - margin - Pnl

The margin amount is required to hold your positions, check the market margin requirements to find out the exact amount per position.

If you were to close all your positions you would end with:

Available + margin

There must be something wrong with your account, you wouldn't end in any case with a negative balance with all positions closed. 

Edited by jlz
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Guest Stefan A.
On 13/09/2021 at 09:30, ArvinIG said:

Hi Stefan,

It does apply for countries under European Securities and Markets Authority (ESMA).

Thank you - Arvin

Hi @AndaIG

More specifically, does the negative balance protection apply to retail clients from Romania (EU member)?

Thank you,

Stefan

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On 14/09/2021 at 23:13, Guest Stefan A. said:

Hi @AndaIG

More specifically, does the negative balance protection apply to retail clients from Romania (EU member)?

Thank you,

Stefan

Hi Stefan,

The European Securities and Markets Authority (ESMA) is an independent European Union (EU) Authority that contributes to safeguarding the stability of the EU's financial system by enhancing the protection of investors and promoting stable and orderly financial markets. Therefore it applies to all countries in the EU.
 

Thanks - Arvin

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