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Change to margin requirements


cate

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Hi,

Is there any update on when the new margin requirements will be announced ahead of the changes on 11th June? It's less than a week away now, and it's impossible to open new positions not knowing what may suddenly change in a few days. I really don't want to take a position in a currency pair and suddenly discover that on the 10th I either have to close the position or fund my account with a whole lot of extra margin.

Could you find out for us when the information will be available, please @KoketsoIG ?

Thanks,

Cate

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Hi @alpen

I was just going to reply to you when an email appeared in my inbox from IG in reply to my last attempt. And here it is - the full list of the prospective margin on FX positions and a sheet of the commods where the margin rate is increasing. After all the confusion, the list itself is reassuring! Commods don't include oil or gold but do have a number of things like corn, nat gas, silver. The FX pairs are really surprising - particularly the TRY pairs which are currently at 25% margin but are now showing as going to 5%. They've never been that low since I started trading them! It doesn't look as though there are any increases in the FX margins, at least not at Tier 1 which is all I trade.

Anyway, I recommend anyone who wants the info to write to the helpdesk, and a document should be forthcoming!

Good luck to all,

Cate

 

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14 minutes ago, cate said:

Hi,

Is there any update on when the new margin requirements will be announced ahead of the changes on 11th June? It's less than a week away now, and it's impossible to open new positions not knowing what may suddenly change in a few days. I really don't want to take a position in a currency pair and suddenly discover that on the 10th I either have to close the position or fund my account with a whole lot of extra margin.

Could you find out for us when the information will be available, please @KoketsoIG ?

Thanks,

Cate

@KoketsoIG Tried to tag you in the original post, but it didn't seem to recognise your username.

Thanks,

Cate

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Posted (edited)
11 hours ago, cate said:

suddenly discover that on the 10th I either have to close the position or fund my account with a whole lot of extra margin.

If we believe the announcement email, one might not even have the time to choose - if one's margin falls below 50% of new margin requirements, one would be automatically and forcefully closed out.

Edited by neueneuen
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4 hours ago, neueneuen said:

If we believe the announcement email, one might not even have the time to choose - if one's margin falls below 50% of new margin requirements, one would be automatically and forcefully closed out.

It seems extraordinary, doesn't it? And I'm not managing to get anyone at IG to realise that it matters.

I originally emailed them questioning exactly the point you make and got a reply on 28th May saying "We apologize for the confusion caused by the notice sent out on margin increases given without confirming what the new rates will be. Our CRM team will send out communications soon before the 11th of June 2024 to confirm the new margin rates for each market before they are implemented." Since then I've been trying to find out when "soon before the 11th" will be, but with no success!

The recent unannounced changes to margin for the TRY pairs are making me uneasy - if the new margin requirements on the 11th might make dramatic changes like that to other exotic pairs then I may suddenly find that my positions in pairs like EUR/MXN are unaffordable. I'd like to have the opportunity to gradually get out of them now rather than being obliged to close them with little (or no!) warning at what may be a particularly bad time. 

It's such a wide range of instruments they're talking about, and no indication of which ones are going to have their margins increased (as opposed to reduced, which obviously I'm less worried about). I could easily be wiped out if margins on gold and oil and all the exotic FX pairs suddenly doubled without warning.

If it's any use to anyone, the only concrete piece of information I've managed to get so far is that trades in the FTSE won't be subject to a margin increase, just to an adjustment to the tiers.

This is such a departure from the way margin changes are normally announced, that I'm wondering what problems IG may be having at the moment. It's worrying. 

 

 

 

 

 

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16 hours ago, cate said:

@KoketsoIG Tried to tag you in the original post, but it didn't seem to recognise your username.

Thanks,

Cate

Dear @cate,

Unfortunatley, the new margin will go live on the 11th of June.

The helpdesk can give you the new margin on the positions you currently hold. These will be updated regularly. The email address is helpdesk.uk@ig.com

All the best,

KoketsoIG

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3 hours ago, KoketsoIG said:

Dear @cate,

Unfortunatley, the new margin will go live on the 11th of June.

The helpdesk can give you the new margin on the positions you currently hold. These will be updated regularly. The email address is helpdesk.uk@ig.com

All the best,

KoketsoIG

Dear @KoketsoIG,

Thanks for replying. I tried asking the helpdesk, and they weren't able to give me that information. They just said that "Our CRM team will send out communications soon before the 11th of June 2024 to confirm the new margin rates for each market before they are implemented". But it's getting close to the 11th and we still don't know what to expect.

I'll try emailing the helpdesk again, and report back if I get any better luck this time.

Best wishes,

Cate

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Hi @cate

I also raised this issue on this forum a couple of days ago. It's absolutely ridiculous, what possible reason could they have for not publicising the new rates beforehand? They say they can give out (if asked) the margin requirements for the positions we currently hold, therefore they know they know the new margin requirements.

You're right - it gives a worrying message about the business at large.

alpen

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8 hours ago, cate said:

Hi @alpen

I was just going to reply to you when an email appeared in my inbox from IG in reply to my last attempt. And here it is - the full list of the prospective margin on FX positions and a sheet of the commods where the margin rate is increasing. After all the confusion, the list itself is reassuring! Commods don't include oil or gold but do have a number of things like corn, nat gas, silver. The FX pairs are really surprising - particularly the TRY pairs which are currently at 25% margin but are now showing as going to 5%. They've never been that low since I started trading them! It doesn't look as though there are any increases in the FX margins, at least not at Tier 1 which is all I trade.

Anyway, I recommend anyone who wants the info to write to the helpdesk, and a document should be forthcoming!

Good luck to all,

Cate

 

Hi Cate

Are you able to post a copy of the document that you received?

Cheers

Mat

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