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Online Share Trading

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MArgins

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Not applicable
With the new margins takinf effect on Tuesday, Monday will prove very interest.
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7 REPLIES 7
Day_Trader
Regular Contributor
Especially the 300% increase on some!
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Not applicable
Bloody ridiculous,some of the increases.
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SimonPB
Valued Contributor
DT, not at all. The margins have come off markedly (in % terms) due to strong share price increases and as such the gearing levels have shoot through the roof to massive risk levels.
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Not applicable
I suppose so,however surely increases should only come into effect in the new contract period...?Because at a whim I now need to lose contracts due to the large increase.Not really fair to move the goalposts halfway through the contract period....
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Day_Trader
Regular Contributor
Agree with you DT. Also new contracts for Dec were given at the same margins as the old Sept-contracts - even after share-price increases! So Simon - I do not agree with that logic...
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SimonPB
Valued Contributor
The margins haven't been adjusted in months and so risk went haywire making this a must (remember it is your risk as much as ours). Importantly it only effects a few smaller stocks (which already carry more risk, never mind the extra margin risk). Going forwards margin will be checked/adjusted monthly.

If you have to close some contracts, are you not over exposed - especially considering the gearing/risk level you have with this volatile stocks. All smiling when going your way, but a disaster when it turns (and they all turn one day).
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Not applicable
I agree to an extent ,however my argument is that surely original positions should remain unchanged until sold or close out occurs.
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