ESMA - 100% margin needed in some cases?
Joined 17/05/23 10:51
Does anyone else know any other SB providers that you can use to trade through TV? I've only so far seen CFD providers which doesn't work for me due to tax reasons (mainly the hassle of having to account for it as well as the obvious cost).
Is there any update on when/if there will be any integration with Tradingview???
By TraceyShort · PostedThe anonymity of cryptocurrency transactions can vary depending on the specific cryptocurrency you use and the methods you use. While some cryptocurrencies provide a degree of privacy and anonymity, it is important to note that achieving complete anonymity can be difficult. Most cryptocurrencies operate on a pseudonymous basis. Transactions are recorded in a public ledger, called a blockchain, using cryptographic addresses instead of personal information. However, these addresses are usually not directly linked to a real identity, unless someone voluntarily discloses this information. Some cryptocurrencies, such as Monero (XMR) and Zcash (ZEC), are specifically designed to increase privacy and anonymity. I read on https://deeplab.com/darkweb/anonymous-sudan-launches-cyberattacks-on-middle-eastern-news-outlets-expands-target-list-with-four-additional-names that some people use this anonymity as a cyber attack.
If I understand the email from today correctly, in some cases 100% margin of a trading position are needed.
A lot of traders that I know that are using CFDs or spreadbetting use it for the trading aspect of their portfolio, while long term strategies like holding stocks are performed in other accounts.
That is how I do it and that is why I mostly do not diversify trades on IG.
Lets say I would like to trade Bitcoin via IG.
Lets make a simple example:
Bitcoin is at 10000 US$
I would like to trade 1 unit (Euro or BP...), that means that under the new ESMA rule I have to put down a 50% margin in that case equivalent of 5000 US$.
Should that be my only position in the account, then the position would be automatically be closed at a loss of 50% of the account, which would occur at Bitcoin at 7500 US$ although the (guaranteed) stop is not reached and enough money is on the account.
To really only be executed at a 50% stop, would mean to increase the balance of the account to 10000 US$ meaning that I trade effectively at a leverage of 1 instead of the maximum 2.
That applies for any trader that is only holding a single position.
Are there any plans of IG to counter that "problem" as in for example offering "virtual loans"
Especially for cryptocurrencies I else do not see the point in using IG (or any CFD/spreadbetting company within Europe) compared to directly buying the coins if, in the end, a 100% margin is needed anyway.
Any input or correcting my possibly wrong way of understanding the ESMA rules is appreciated.
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