We are implementing a new equity risk rating model on the March 10th. These changes will impact single stock CFDs and short stock option position margin requirements, and where applicable, the collateral for cash shares/ETF positions.
You should be able to see all the scheduled changes and how they could impact current positions in the platform’s ‘Margin Monitor’ tool. The tool can be accessed via the ‘Info’ icon, under ‘Account Summary’.
Clients that could have been exposed to a large margin usage swing have been contacted individually.
If you have any questions, please send us an email at [email protected]
On Wednesday 21 of November 2018 at 08:00 GMT we will be implementing new standard margin rates for FX and CFDs. These margin rates will remain in effect until further notice.
These margin rates will remain in effect until further notice, as we continue to monitor the geopolitical and market situation closely.
What will the margin rates be?
The following tables gives you an overview of the affected instruments on your account.
FX
FX
Current minimum margin
Minimum margin from 21 November
SEK
2.5%
3.0%
RUB
7%
7.5%
CFDs
Index Tracker CFDs
Current minimum margin
Minimum margin from 21 November
EU Stocks 50
3%
4%
Swiss 20
3%
4%
France 40
3%
4%
Netherlands 25
3%
4%
Germany 30
3%
4%
Commodity CFDs
Commodity CFDs CFDs
Current minimum margin
Minimum margin from 21 November
NY Cocoa
5%
8%
Cotton
4%
5%
Soybeans
4%
5%
Silver
8%
5%
Gasoline US
8%
5%
UK Gas Oil
8%
5%
Heating Oil
8%
5%
You can check the upcoming changes to margin rates and collateral requirements for your respective margin profile in the trading platform under ‘Account – Margin and Collateral’.
Margin Monitor Feature
Since Monday 22 October, the new ‘Margin Monitor’ feature is be available in GTS Web and GTS Pro, to complement the existing Margin and Collateral changes module. This provides an overview of the positions that are affected by margin changes, and shows the current and the simulated margin after all changes have been applied.
Access to the Margin Monitor
The Margin Monitor will be available through an icon on the Account Toolbar (on the Account Summary in GTS Pro). The Margin Monitor is also available in My Account.
How does this impact your trading?
If you have open positions in any of the affected markets, please ensure that you monitor your positions carefully and maintain sufficient funds in your account to meet the increased margin requirements during this period of turmoil.
We recommend you keep the following in mind, especially when trading during periods of potential market volatility:
Consider placing relevant resting orders in advance. Market liquidity may vary substantially, and trade/quote requests may be unavailable at times as existing resting orders and new market orders are filled as priority
Market orders are not guaranteed to be filled at any specific price – they will be filled “at best” according to available market price when processed
Stop Loss orders are converted to Market orders once triggered, so are not guaranteed to be filled at your stop order level – gaps in available liquidity can result in significant slippage on Stop orders
Using Stop Limit type orders (rather than Stop Market) can be very beneficial as they allow the client to specify the worst acceptable immediate fill rate after triggering, and they will rest in the order book if not able to be filled immediately
Buying options (i.e. puts to protect long positions and calls to protect short positions) could be a hedging vehicle suitable for market uncertainty since they offer protection at the fixed Strike price, rather than Stop orders where fills on gapped prices can occur
More information
If you have any questions, please contact [email protected].
On Friday 2 November 2018 at 08:00 GMT we will be implementing new standard margin rates for CFDs, as a result of the continued uncertainty surrounding the Brexit negotiations.
These margin rates will remain in effect until further notice, as we continue to monitor the geopolitical and market situation closely.
What will the margin rates be?
The following table gives you an overview of the affected instruments on your account.
CFDs
CFDs
Minimum margin from 2 November
UK 100
5%
EU Stocks 50
4%
Swiss 20
4%
France 40
4%
Netherlands 25
4%
Germany 30
4%
You can check the upcoming changes to margin rates and collateral requirements for your respective margin profile in the trading platform under ‘Account – Margin and Collateral’ from Friday 19 October 2018 and onwards.
Margin Monitor Feature
From Monday 22 October, a new ‘Margin Monitor’ feature will be available in GTS Web and GTS Pro, to complement the existing Margin and Collateral changes module. This gives you an overview of the positions that are affected by margin changes, and shows the current and simulated margin after all changes have been applied.
Access to the Margin Monitor
The Margin Monitor will be available through an icon on the Account Toolbar (on the Account Summary in GTS Pro). The Margin Monitor is also available in My Account.
How does this impact your trading?
If you have open positions in any of the affected markets, please ensure that you monitor your positions carefully and maintain sufficient funds in your account to meet the increased margin requirements during this period of turmoil.
We recommend you keep the following in mind, especially when trading during periods of potential market volatility:
Consider placing relevant resting orders in advance. Market liquidity may vary substantially, and trade/quote requests may be unavailable at times as existing resting orders and new market orders are filled as priority
Market orders are not guaranteed to be filled at any specific price – they will be filled “at best” according to available market price when processed
Stop Loss orders are converted to Market orders once triggered, so are not guaranteed to be filled at your stop order level – gaps in available liquidity can result in significant slippage on Stop orders
Using Stop Limit type orders (rather than Stop Market) can be very beneficial as they allow the client to specify the worst acceptable immediate fill rate after triggering, and they will rest in the order book if not able to be filled immediately
Buying options (i.e. puts to protect long positions and calls to protect short positions) could be a hedging vehicle suitable for market uncertainty since they offer protection at the fixed Strike price, rather than Stop orders where fills on gapped prices can occur
More information
If you have any questions, please contact [email protected].
With the immediate market risk of the US election behind us, margin levels have now been normalised. The margin rates for your margin profile can be found under Account -> Trading Conditions in the platform.
UPDATE: NOV 9th 2016
Following the uncertainty posed by the US election, Global Trading is continuing to assess market conditions and is currently aiming to return to normalised margin levels starting tomorrow at 12:00 GMT, if no further unexpected developments occur. You will receive final details of the rates and final confirmation of the timing tomorrow, 10 November, 2016, around 10:00 GMT.
In anticipation of potential volatility during the upcoming US election period, we will be raising margins for a selected group of products as of Thursday, November 3rd, 2016 at 13:00 GMT. This will help protect against potential volatility, rapid price movements, and gapping. Due to market uncertainty in the lead-up to this event, please be aware of the possibility of substantial price gaps and illiquidity, along with rapid price movements in certain stocks, indices and FX pairs.
Similar margin changes were implemented leading up to the UK referendum (Brexit), in June.
Please bear the following in mind when trading during periods of potential market volatility:
Market liquidity may vary substantially, and trade/quote requests may be unavailable at times as existing resting orders and new market orders are filled as priority
Market orders are not guaranteed to be filled at any specific price – they will be filled “at best” according to available market price when processed
Stop Loss orders are converted to Market orders once triggered, so are not guaranteed to be filled at your stop order level – gaps in available liquidity can result in significant slippage on Stop orders
Buying options (i.e. puts to protect long positions and calls to protect short positions) could be a hedging vehicle suitable for market uncertainty such as the US Election since the Strike price is fixed in advance
Ensure that you are familiar with placing orders and initiating trade requests on the platform
Consider placing relevant resting orders well in advance of the US election
For GTS clients, please go to “Margin and Collateral Changes” under the “Account” tab in the GTS web-browser to view further details on specific margin & collateral changes along with future updates. Current requirements can be found under “Trading Conditions.”
It is important to note that additional requirements may follow, and we will notify clients as soon as possible. If you have any open positions in the affected markets, we advise that you monitor your positions accordingly to ensure a sufficient account surplus and margin collateral. The above changes should be temporary, however, and we expect a return to normal levels depending on market conditions following the US election.
