Options Trading on Equity and Closure of position query

[Talwar]

Hi, I am new to IG trading platform, my trading location is UAE. I have 2 queries: 

1. As mentioned on IG website that there are few equities on which we can trade, but i cannot see any equity option only idex, Fx and commodities.

2. When selling one lot of (let say) US 500 (SPX) option 1 contract takes a margin of USD 8K. Assuming my account has a Fund of USD 9K and due to current P&L, my available fund  goes in negative, will IG close my position automatically? or when it will be closed by IG ? 

 

[ArvinIG]

9 hours ago, Talwar said:

Hi, I am new to IG trading platform, my trading location is UAE. I have 2 queries: 

1. As mentioned on IG website that there are few equities on which we can trade, but i cannot see any equity option only idex, Fx and commodities.

2. When selling one lot of (let say) US 500 (SPX) option 1 contract takes a margin of USD 8K. Assuming my account has a Fund of USD 9K and due to current P&L, my available fund  goes in negative, will IG close my position automatically? or when it will be closed by IG ? 

 

Hi @Talwar,

1. At the moment the only stock option you will find on the platform is Tesla. You can trade our full range of share options – offering stocks from the world’s major exchanges – by phone on +971 (0) 4 559 2104.
More details here.

2. We will close positions if you are Margin Call

There are typically four scenarios in which your positions will get automatically closed. However, we can’t always apply this protection and you shouldn’t rely on us doing so.

- If your equity drops beneath 50% of your margin requirement ( Equity = Total capital you have deposited +/- P/L)

- If you remain on margin call constantly for 24 hours

- If you are on margin call during periods of increased volatility, or periods when we anticipate increased volatility

- If you are on margin call going into the weekend. We’ll try to avoid having any accounts on margin call going into the weekend. So if your equity is below 100% of your margin requirement, your positions will be at an increased risk of being closed on a Friday evening.

I invite you to read trough this help page for further details here.

 

I hope that it helps !

All the best - Arvin

[Talwar]

Hi @ArvinIG thanks for your clarification.