Jump to content

Margin Calls on Demo Accounts? Are position closures simulated?


Recommended Posts

Posted

Hi Folks,

I've just posted the below to a reply on an FX thread but it's really applicable to trading any market so thought I'd repost it here, it should be relevant to anyone playing with the demo account re spread betting and CFDs.

So I'm a newbie here trying to get my head around spread betting (as opposed to CFDs for the tax benefit)... 

I want to figure out the dreaded margin call position closure before I start using real money.

From: https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/margin/what-is-margin-call

"Standard trading accounts will be triggered for position closure when your equity drops beneath 50% of your margin requirement."

Yesterday I entered a random trade to try and trigger a margin call trade close (50%) but it doesn't seem to work? I wanted to get the thoughts of the community just to see if my logic works out on what I think should have triggered it...

Funds: £500

Natural Gas: 2644

Size / Long: £1.85

Opening Margin: £489.14

Just taking into account whole numbers on the price, 2644, 2643, 2642 etc. on my calculation the margin call sell off should have occurred at 2498...

Funds: £500

Natural Gas 2498

Size / Long: £1.85

Current Margin: £462.13

P/L: -£270.10

Equity: £229.90

50% of £462.13 = £231.07

Equity has dropped below 50% of margin...

This all happened yesterday... Natural Gas ended up dropping to £2454.50 so shouldn't that trade have closed out?

Thanks in advance for any input.

Cheers

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • With Bitcoin aiming for a new ATH, this staking might be the best option to maximum holding
    • Tbh, trading can be frustrating, I keep trying different strategy to perfect my trading skill but all seems to be in vain. Recently, I learnt we can use AI to predict the market to trade, so I decide to start asking AI to analyze when btc is overbought so I can look for short entry but this seems not to work against as most trade I enter end up hitting my SL. I know this is part of the learning process so I don’t risk too much but it hurt to lose fund especially when you are trying your best to make your first positive trade. Sometime, I just feel the market is totally against me and that further discourages me from futures trading. Recently, I got introduced to BTC staking on some platforms like BGBTC on bitget, Babylon chain, Solv protocol, Coredao etc but that doesn’t quench my hunger to understand BTC volatility since I will just stake my btc and earn apr. I want to understand how this volatility works so I can start making something from futures trading rather than just staking to earn apr. Also, I feel staking is for spot traders that intend to hold for a longer period and that doesn’t expose you to the market. I am not like most trader that prioritize profit over knowledge even when that is the final goal.
    • $ETH will surpass ATH this month and hit $7-8k next year
×
×
  • Create New...
us