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Has there been an increase in margin requirements?


Guest Steve

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Guest Steve

Hi ... please assist.

I have been dealing with ig as a small trader (mainly main currency pairs & indices).

I havent trade for 3-4 months, and know i find that leverage has changed dramatically.

I need 10xtimes cash amount  for same points trade.

Is it something to do with my account, or all accounts???

Can i change that ???

Please assist in any way you can.

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  • JamesIG changed the title to Has there been an increase in margin requirements?

Please find useful information on the following links. Margin requirements have changed basis ESMA requirements, however this is only on new positions. Old positions should be fine. This has affected all retail accounts. 

https://www.ig.com/uk/help-and-support/accounts-and-statements/my-accounts/what-is-a-professional-client-and-how-do-i-become-one

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/margin/why-has-my-margin-to-open-a-position-increased

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Hi - margin and leverage are basically the same thing. Margin required to open a trade is another phrasing on it.

Say you needed 100% margin to open a trade, that would be the same as 1:1 leverage.
Say you needed 50% margin to open a trade, that would be the same as 2:1 leverage.

If you do 100/percentage then you get the x:1 ratio. E.g. 20% margin - 100 / 20 = 5:1 ratio. 

If margin rates increase, leverage decreases. 

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    • Hi @ChocoIG, thanks for your question. Please reach out to our client facing team as we can't assist with these queries on the community, the client facing team will be able to check with the desk and see why your orders are not valid and give you feedback, but we do apologise for the inconvenience. You can reach them on helpdesk.uk@ig.com All the best - MongiIG
    • Yeah I can see that - from experience if the 50% level is going to work it'll go through in 1-3 attempts at most which means you can afford a tight stop, but you can use the swing low point, whatever suits you
    • I guess i do it because i see the low point as relative safety and assume the market won't go through it, but this can make the distance from my entry to the low point quite large and hence potential R smaller.  I'll take a look back to see how a % of ATR might have faired. cheers   
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