From an email sent by IG:
Further to our previous email, please remember that new margin close-out rules will be applied to your account from 1pm (UK time) on Monday 30 July. This is a result of new ESMA requirements coming into effect on 2 August 2018.
How will my account be affected?
You currently have a limited-risk account, which does not have any automatic margin close-out feature.
However, new ESMA requirements require us to automatically close your positions when your cash, including running profit and loss, drops below 50% of your margin requirement. This represents a significant change to how your account operates and it is important that you understand how your account will function.
How does this work in practice?
Imagine you have £1200 cash on your account. You place a FTSE trade with a guaranteed stop, which requires margin of £1000. If you run a loss of £700 on the position, your account equity would become £500. This reaches 50% of your margin requirement, and therefore triggers position closure under the new close-out rules.
For more information on how your margin policy will work, please see our website or contact our helpdesk.
If you have existing positions and are running losses on your account, you will be at risk of closure if you do not have sufficient funds on the account to cover your full margin requirement. We will be making this change from 1pm on Monday 30 July.
For long spread bets on options where you have paid the option premium in full upfront, the margin requirement equates to the premium paid. The margin and profit/loss on these positions will therefore not be included in the deposit ratio calculation. These positions are still at risk of closure if other positions cause losses greater than the equity on your account. Please note that from 3pm (UK time) on Friday 27 July we will longer offer CFDs on options to retail clients.
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