Funds in account to trade

[GregW]

Just set up an account. Do I need to have enough funds in my account to cover a trade or can they be added post trade?

[nit2wynit]

2 hours ago, GregW said:

Just set up an account. Do I need to have enough funds in my account to cover a trade or can they be added post trade?

Hi.  If you have say £1000 in your trading account and you take a position that requires a Margin of  say £900, this will leave £100 in you account as Available.  If your position goes against you, your remaining £100 will decrease.  If it becomes Negative (more than the £100 you have available) you may receive a 'Margin Call'.  This is when you are required to re-fund your account to cover your position.  There is a Time Limit on this.  Your position may be temporary, like minutes, but if prolonged and a greater negative available balance occurs, the order could be prematurely Closed on your behalf.

However, there are new rules coming in to place later this year.  I don't have the link, but the info is available on the IG website.

 

 

Edited April 9, 2020 by nit2wynit

[GregW]

Thanks. That’s what I assumed. Unfortunately IG are not a “back” offering funds at zero interest! 

Much appreciated.