Jump to content

New margin requirements for Oil


cate

Recommended Posts

Hi all,

IG sent an email yesterday about the new margin requirements for trading oil. Existing positions will have the new charge applied this afternoon, and it will be "the larger of 80 points multiplied by your trade size or 5% of the notional value of your trade, based on the opening level". I trade the CFD 1 euro contract, at the minimum size which is .25 of the full contract. Does anyone know how to apply the new formula? For example what is the "trade size" and what is the "notional value"?

What makes it more confusing for me is that the email said that new positions would already be subject to the new charge, but I don't notice any change, although looking at the "information" for the contract it shows margin required as 80%. But the dealing ticket gives the margin on a .25 contract as about 44 euros, which doesn't look like 80%. Just anxious to understand what changes are going to come in, since I have several positions open and don't want to be hit by an 80% (of several thousand pounds?) charge at 4pm when the change comes in!

Perhaps I should tag @CharlotteIG on this.

Hope everybody is keeping safe!

Cate

Link to comment
15 minutes ago, cate said:

Hi all,

IG sent an email yesterday about the new margin requirements for trading oil. Existing positions will have the new charge applied this afternoon, and it will be "the larger of 80 points multiplied by your trade size or 5% of the notional value of your trade, based on the opening level". I trade the CFD 1 euro contract, at the minimum size which is .25 of the full contract. Does anyone know how to apply the new formula? For example what is the "trade size" and what is the "notional value"?

What makes it more confusing for me is that the email said that new positions would already be subject to the new charge, but I don't notice any change, although looking at the "information" for the contract it shows margin required as 80%. But the dealing ticket gives the margin on a .25 contract as about 44 euros, which doesn't look like 80%. Just anxious to understand what changes are going to come in, since I have several positions open and don't want to be hit by an 80% (of several thousand pounds?) charge at 4pm when the change comes in!

Perhaps I should tag @CharlotteIG on this.

Hope everybody is keeping safe!

Cate

Hi, I answered a question on this yesterday but haven't seen the email but I took it to be referring to professional clients who normally have a margin requirement of just 1.3% that will be raised to 5% due to increased volatility while retail clients who already have a margin requirement of 10% won't be affected?

  • Like 1
Link to comment

Thanks for the reply, @Caseynotes. I can see that would make sense, but it's odd because there was nothing in the email to suggest it was intended for professional clients (and I'm not one). And then there's the "information" on the contract which now shows 80% not the 10% it used to, even though (at present?) that isn't being used to calculate the margin on the deal ticket. :(

 

Link to comment

Oh, and incidentally that 80% margin is for tier 1 - it goes up to 480% on tier 4! Needless to say I'm never going to have to worry about anything beyond tier 1, but still a potential jump from 10% to 80% at 4pm is worrying. @CharlotteIG, is that really what will happen?

 

Link to comment
16 minutes ago, cate said:

Oh, and incidentally that 80% margin is for tier 1 - it goes up to 480% on tier 4! Needless to say I'm never going to have to worry about anything beyond tier 1, but still a potential jump from 10% to 80% at 4pm is worrying. @CharlotteIG, is that really what will happen?

 

yes the deal ticket doesn't add up.

  • Like 1
Link to comment
Guest Muneeb Younsi
On 24/04/2020 at 12:58, cate said:

Hi all,

IG sent an email yesterday about the new margin requirements for trading oil. Existing positions will have the new charge applied this afternoon, and it will be "the larger of 80 points multiplied by your trade size or 5% of the notional value of your trade, based on the opening level". I trade the CFD 1 euro contract, at the minimum size which is .25 of the full contract. Does anyone know how to apply the new formula? For example what is the "trade size" and what is the "notional value"?

What makes it more confusing for me is that the email said that new positions would already be subject to the new charge, but I don't notice any change, although looking at the "information" for the contract it shows margin required as 80%. But the dealing ticket gives the margin on a .25 contract as about 44 euros, which doesn't look like 80%. Just anxious to understand what changes are going to come in, since I have several positions open and don't want to be hit by an 80% (of several thousand pounds?) charge at 4pm when the change comes in!

Perhaps I should tag @CharlotteIG on this.

Hope everybody is keeping safe!

Cate

I see the same issue. Opened then position @1585 with size 30 and now the margin is coming as 15000 instead of 4755. Why is that?

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,599
    • Total Posts
      96,961
    • Total Members
      44,170
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Jag
    Joined 03/12/23 16:16
  • Posts

    • Trade statistics of the 'Triangle 8th' system as of 12/03/2023 Gain: 102.00% Profit: 781.52 USD Funds: 1,400.18 USD Balance: 1,781.52 USD Beginning deposit: 1,000.00 USD Withdrawals: 0.00 USD Top-ups: 0.00 USD
    • Name of stock - Vox Royalty   Name of Stock Exchange - NASDAQ   Leverage or Share dealing - Leverage   Ticker - VOXR   Country of the stock - Usa   Market Cap - 100M
    • It is a best practice to buy dip and sell high but this strategy mostly doesn’t go as planned because you can’t predict the final bottom. Some traders BTD anticipating a potential pullback which mostly doesn’t happen and this force some into panic selling. DYOR is mostly advisable but some people fail to know which analysis they should focus more on. When deciding to hold a token for a long-term FA is very important and its cardinal point should be thoroughly scrutinized before making such a decision. These points include; Whitepaper, Road map, and Usecase. These points have a huge impact on deciding how long to hold a project and also booast your confidence in the project's bullish potential.  The first principle in this industry is “invest what you can afford to lose" though many neglect this principle as such when a project is going through a price correction they panic sell and sell at a huge lost. Most normal regret their decision later when they see the project back on track. Once you adhere to the first principle you hardly fall victim to panic sales. Note that it is mostly not advisable to hold meme tokens una less you are convinced because meme goes with the hype and finds it hard to retest its ATH once the hype is over.  Anyway what are your trading strategy and principles you adhere to most?
×
×
  • Create New...
us