Due to extreme market conditions, Tuesday, the 1st of December 2020, after 15:30 GMT, we will be raising gradually the margin requirements for all CFDs on stocks to 50%. The change will be temporary until market conditions stabilize.
That means the existing leverage will decrease to 1:2. If you have open positions with stocks, this will affect your account margin level and may lead to the automatic closure of one or multiple positions in case you don’t have enough free funds. Margin requirements on indices, commodities & currencies will remain unchanged.
We are forced to make this change by the unusually high volatility in the market and because it has become increasingly hard to hedge the exposure to the current levels. The decision has been taken per the Risk Disclosure Notice:
We reserve the right to adjust margin requirements for each of our products. Trading 212 UK Ltd. has the right to change or increase its Margin Requirements at any time: In order to protect the firm and all of our clients, Trading 212 UK Ltd. may modify Margin Requirements for any or all clients for any open or new positions at any time, in Trading 212 UK Ltd.'s sole discretion. If we increase our margin requirements, it may prevent you from adding positions or hedging existing positions if you have insufficient equity. If margin requirements increase on your existing CFDs, you will have to deposit additional equity in advance or your positions may be liquidated. This may result in your margin requirement increasing. You may therefore be required to deposit additional funds to maintain existing positions.