Margin Call

Gaby · 2020-07-22T10:55:33+00:00

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

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07/22/2020 at 11:55 AM #139822 quote

Gaby
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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 #139823 quote

Nicolas
Keymaster

Legend

The position size will not be recalculated by the software to avoid margin call, if that’s your question? The order sizes are the ones that you have declared in your code (fixed or calculated upon a money management).

07/22/2020 at 12:08 PM #139824 quote

GraHal
Participant

Legend

IG 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 #139928 quote

Gaby
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Hi 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 quote
GraHal
Participant

Legend
1. 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.

Gaby.jpg
07/23/2020 at 6:22 PM #139990 quote

Gaby
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Good stuff! That’s exactly what I hoped the Pro RealCode system was going to do.

GraHal thanked this post

07/23/2020 at 8:38 PM #140003 quote

GraHal
Participant

Legend

You can easily try it out on the Demo Platform … get an Auto-System in an open trade then close the trade from the IG’s own platform.
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