Jump to content

Margin collected... on working orders?!


xnox

Recommended Posts

I am using demo spread betting account and I have opened a bunch of limit/stop working orders against FTSE100 futures contract.

I have set them to be good until end of week, and they are within +/- 500pts of the current trading level.

Despite none of them triggered, my balance overview already shows "Margin incurred" which to me seems odd, given that the working orders have not be executed yet. Conceivably, if one order out 100 is executed I can end up in margin call situation - what will happen then? Will IG be closing open position or cancelling working orders? Is it normal for margin to be charged on working orders?

Link to comment

Hi 

 

Thanks for your question.

 

Yes, it is normal for margin to be used on working orders. This is due to the fact that if the order gets filled, you will need this cash available to cover the margin. If you have open positions and working orders, all using up margin, and end up into a margin call, then our standard procedure would be to delete the working orders first, in an attempt to release funds without needing to adjust any live positions.

 

If we did not apply any margin to the working order, it would be possible to then use up all available funds in your account on open positions, whilst also having working orders waiting to be filled. If you then get filled on the working orders this could then put your account straight into a margin call situation, and as you open new positions with the working order, your other positions get closed off due to the margin call.

 

In order to avoid this situation, by using funds as margin for working orders, you know what your true available funds figure is, taking into account any potential order fills.

 

I hope this explains things and if you have any further questions please get in touch.

 

Regards,

 

Simon

Link to comment

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      16,217
    • Total Posts
      77,609
    • Total Members
      64,384
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    knokke12
    Joined 17/10/21 07:13
  • Posts

    • FCA rules to ban crypto products are dumb. I used to have a Bitcoin ETN in my SIPP which was affected by the ban, meaning I could no longer buy the product anymore, only sell it. I sold it recently with a heavy heart knowing under the current rules I could not buy it again.   With the proceeds I bought a range of Bitcoin mining stocks like Argo Blockchain, Hut8 and Mara which act as a leveraged play on Bitcoin price (like all commodity miners do versus the underlying commodity). These miners carry greater operational risk than holding Bitcoin itself and the share price is much more volatile too. So instead of protecting me, all the FCA has done is forced me to take greater risk elsewhere.
    • Name of stock: Global X Blockchain ETF  Name of Stock Exchange: Nasdaq Leverage or Share dealing: Share dealing Ticker: BKCH Country of the stock: USA Market Cap: $56 million AUM   Thanks for your consideration.
    • If you still think the billions being spent on infrastructure is just to see off the covid endemic now might be a good time to wake up.    Meanwhile in Taiwan, 'Well that's strange: In Taiwan, the number of people dying after their COVID-19 vaccination is exceeding the number of deaths from the virus itself.'  1nPr0p0rt10n2 @1Pr0p0rt10n2  4h More Die After Vaccination Than From COVID-19 in Taiwan (ntd.com)   A US hospital healthcare worker explains the use of the PCR to inflate covid hospitalisations and death numbers. (10 min) "I've seen 32 elderly people pass away immediately after taking the Moderna vaccine." (bitchute.com)   Italian protests today.
×
×
  • Create New...