I received an email this morning saying that all remaining crypto positions will be closed in one month, and margin requirements on cryptos will be increased to 100% (!) from Monday. The excuse is, inter alia, that "We have now reached our internal product limit for exposure to cryptocurrencies, and as a result will be removing cryptocurrencies from our offering to UK retail clients".
What a disgrace.
If the margin is 100% there would be no funding exposure for IG. I think what this all really means is that, in a product structured and sold as a bet, they are uncomfortable with losing the bet if cryptos continue to rise significantly. In a market which is, for regulatory reasons, no longer available for new entrants it's not as if they are getting a flood of new money coming into it. So they are going to close positions which have been in place for some time.
And increasing the margin with only a weekend's notice is pretty shabby too.
The email went on to say "We encourage you to review your exposure and to manage your position(s) accordingly." I shall be reviewing, instead, my use of the platform.
