By DominicWalsh · Posted
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
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you really have to do something regarding the margin requirements for guaranteed stops.
There is just no point in getting a margin call with a open position that has a guaranteed stop lets say at 1500 and although I am allowed to move the guaranteed stop up to 1600 that adjustment does not free any money regarding to the margin requirement at all.
I completely understand that you try to adjust the leverage that a customer is taking but if I have lets say 3 positions where all 3 guaranteed stops are at the opening level, my risk is zero.
Therefore I should be able to withdraw my initial deposit completely or use it to enter new positions.
Locking some of that money for a margin that at a risk of zero is not existant is not right.
What is worse in these situations that you never know, how much risk you are really taking as the margin is always higher than the real guaranteed (!!) risk.
If you want to lower the leverage then increase the stop distance from 10% to lets say 25% or 50% but a guaranteed stop should never block more money than the guaranteed risk is stating.
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