CFDs are complex, leveraged products and carry a high risk of rapid capital loss. Most retail investors lose money trading CFDs. You should not trade CFDs unless you understand how they work and can afford to lose the money you invest.
As an Australian retail client, your Trading 212 AU CFD account is subject to three mandatory protections set by ASIC's Product Intervention Order (PIO) for CFDs. These apply automatically - there is nothing you need to enable.
What are the leverage limits?
Leverage is capped per asset class. The maximum leverage you can use on a position depends on the type of instrument:
- Major currency pairs: 30:1 (minimum margin 3.33% of notional value)
- Minor currency pairs, gold, and major stock-market indices: 20:1 (minimum margin 5%)
- Commodities (other than gold) and minor stock-market indices: 10:1 (minimum margin 10%)
- Shares and other underlying assets: 5:1 (minimum margin 20%)
- Crypto-asset CFDs: 2:1 (minimum margin 50%)
đź“„ Note
These limits cannot be increased and are the same for every Australian retail client. The leverage available on each specific instrument is shown on its instrument page in the app.
What is 50% margin close-out?
If the equity in your CFD account falls to 50% of the total margin required for your open
positions, we will close your positions automatically until your equity is brought back
above the threshold.
By default, positions are closed on a First-In, First-Out (FIFO) basis - the oldest position is
closed first. If you'd prefer a different order, you can set an alternative closure strategy ahead of
time under Menu → Settings → Trading preferences. The available options are:
- FIFO
- LIFO (newest first)
- Winners First
- Losers First
- Highest Margin First
The 50% close-out itself protects you from running your account down further during a sharp
market move. It cannot be disabled or overridden for Australian retail clients.
We calculate and display your required margin on your account. It is your responsibility to keep enough funds in your account to meet your margin requirement at all times. We will notify you of a margin call through the app, although we cannot guarantee that we will reach you before close-out is required.
What is negative balance protection?
You can never lose more than the funds in your CFD account. If a sudden market movement pushes your account into negative territory, we will restore your account balance to zero.
đź“„ Note
Negative balance protection applies on a per-account basis to your AU CFD account. It does not extend to balances or positions held in other Trading 212 accounts or entities.