Margin Call
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- This topic has 6 replies, 3 voices, and was last updated 5 years ago by
GraHal.
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07/22/2020 at 11:55 AM #139822
Hello,
I have a question regarding IG margin calls. What happen when a running auto-strategy is active with a trader that is piling substantial losses and triggering an IG margin call ? In case new funds are not deposited, will the IG position downsize (for loss re-balancing) be executed by Pro-Realcode?
Thanks, Gaby
07/22/2020 at 12:08 PM #13982307/22/2020 at 12:08 PM #139824IG will close the trade.
IG may do partial close of the trade if multiple position size.
https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/margin/what-is-margin-call
07/22/2020 at 10:52 PM #139928Hi Grahal, Nicolas,
Apologies I was not 100% clear in my original question, let me have a second try.
Grahal, yes, this is the scenario I meant: when IG executes a close (Partial or Total) due to a margin call.
For a trade done manually and directly in IG I am well aware of what could happen: you have a very limited amount of time to deposit new funds (It depends how fast the market moves against you). If the margin call still persist with no added funds, IG will automatically downsize the position.
For a trade done automatically via Pro Realcode I am not 100% sure what will happen:
1 – I understand from your answer IG will close (totally or partially) the trade in the IG account if the margin call is not resolved and with no difference from a manual trade;
2 – But what is going to happen in Pro Realcode?
2.1 Nothing: after the IG margin call downsize the strategy will continue to run in Pro Realcode
2.2 The strategy will stop, as the original position size has been altered
2.1 could be an issue, as the position size is not in sync anymore with the program; also there might be no / or very little funds left available. Ideal would be for the strategy to stop, when a margin call is executed by IG.
Thanks
07/23/2020 at 7:33 AM #139940- Correct
2. Auto-System will close due to external event.
2.1 Incorrect
2.2 Correct
Best is to enable the setting to close all positions (see red arrowhead on attached) when System closes then you can calmly reassess what you do next.
07/23/2020 at 6:22 PM #13999007/23/2020 at 8:38 PM #140003 -
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