Jump to content

Margin Calls on Demo Accounts? Are position closures simulated?


Recommended Posts

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

Link to comment

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

    • this sounds like an amazing opportunity for users in the crypto world. It's important to approach futures trading competitions with caution, ensuring one's financial stability and a comprehensive understanding of the market. While the prizes are enticing, responsible trading remains the ultimate goal. Thanks for sharing such an intriguing event, I’ll definitely be taking a look at it ! 
    • As a newbie crypto trader, I dove headfirst into the world of futures trading on Bitget. Feeling overwhelmed by the charts and analysis, I discovered their copy trading platform. It was a revelation! Following the strategies of Bitget's elite traders, I learned the ropes while making real profits. Their expertise took the guesswork out of trading, allowing me to focus on understanding the market. This new Bitget Futures Elite Trader Selection Program is fantastic news. It incentivizes these top traders, giving them greater exposure, while also helping new users like myself identify proven performers. It's a win-win for everyone, and a huge step forward in making futures trading more accessible and successful for beginners. Thanks Bitget!    
    • Ontology is a high-performance, open-source blockchain that aims to revolutionize the way we approach digital identities, data sharing, and trust in the digital realm. One of the standout features of Ontology is its dual-token model, which separates the roles of ONT and ONG. While ONT serves as the staking tool for nodes and governance, ONG operates as the value-anchoring utility token for on-chain applications and transactions. This innovative approach mitigates the risk of turbulent fluctuations in the native asset value, ensuring a stable and efficient ecosystem. The ONG listing on Bitget is particularly exciting for several reasons. Firstly, it aligns with Ontology's recent announcement of a $10 million fund aimed at fueling the innovation and adoption of Decentralized Identity (DID) through the ONT and ONG tokens. This initiative underscores the project's commitment to empowering, educating, and evolving its ecosystem in exciting new ways.
×
×
  • Create New...
us