Margin Offset/Reduction for opposing hedged positions (ZA)

[kifliki2]

Good day, is there any way to have margin returned to your account if you have a fully hedged position in the same instrument, e.g US Tech 100 short 1 futures contract and long 1 futures contract? 

 

Thank you for your time. 

[kifliki2]

I have only checked the demo-account which does not return margin for fully hedged positions, but understand this is the case with a Live Account. 

[OfentseIG]

3 hours ago, kifliki2 said:

I have only checked the demo-account which does not return margin for fully hedged positions, but understand this is the case with a Live Account. 

Hi there, thank you for contacting us. Are you trading on your ZAR demo account? If you open the same size under the same market, it should return a portion of your margin as you are hedged. 

Please end a screenshot, we will escalate further. All the best, OfentseIG

[kifliki2]

Hi OfentseIG, I have only checked on https://demo-deal.ig.com/ as per the screenshot below

 

[OfentseIG]

8 minutes ago, kifliki2 said:

Hi OfentseIG, I have only checked on https://demo-deal.ig.com/ as per the screenshot below

 

Hi @kifliki2

Margin offset only applies to the domestic account (non-ESMA accounts). If you are trading in an International CFD account, this rule does not apply to ESMA accounts. All the best, OfentseIG

[kifliki2]

Thanks for the info! Have a good one.

[kifliki2]

Hello again, so there is no way to trade US indices with an account that has margin offset?

 

[OfentseIG]

On 11/11/2022 at 17:56, kifliki2 said:

Hello again, so there is no way to trade US indices with an account that has margin offset?

 

Hi @kifliki2

Thank you for reaching out. We only offer SA40 on domestic accounts that have margin offset. Unfortunately the IG International account does not have margin offset as it is under ESMA regulation. 

All the best, O.D

[kifliki2]

Hi @OfentseIG, thanks for getting back to me. Is this different for each region? I have friends who use IG in Europe and Australia where they can trade US indices with margin offset?

[OfentseIG]

Hi @kifliki2

That is correct. 

Different regions have different products offered due to their account specific regulations. 

However, IG Europe is under ESMA and if the client is a retail client and not Pro, the client would not have margin offset when trading US Indices. IG Australia accounts are Non-ESMA so would have margin offset to trade US indices. These markets are offered in their region. Thanks, OfentseIG