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Margin requirements


drnaphtali

Question

Hello all,

Below is a screengrab from the IG dashboard on how margins are calculated:

image.jpeg.e02445870c37df9e28847f316c0497c4.jpeg

I now understand that when calculating margins, even with a guaranteed stop, is that it uses the larger value between the margin without a stop (size x contract size x price x margin factor) and the formula under a guaranteed stop. When making a trade, this is also reflected in the dashboard in that there is no difference in the margin requirement when I add stops or move between normal or guaranteed stop.

What really confuses me, is that the above explanation is quite clear to me in that is not how it is calculated? No where in the text does it mention it uses a "larger value". If this is read objectively, if I plan on using a guaranteed stop, I only need to read the text under "with a guaranteed stop" and there it is clear that margin is only based on your stop distance.

 

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