Response to the increase in index margin rates

Forums › ProRealTime English forum › General trading discussions › Response to the increase in index margin rates

Viewing 11 posts - 1 through 11 (of 11 total)
  • 03/30/2018 at 3:09 PM #66801
    Gertrade

    Hello,

    Since index margin rates will be multiplied by 10 on 01/07/2018, it is possible to react and ask IG and Prorealtime to divide by 10 the minimum amount of each contract.

    Example: S & P 500: today at least 5 contracts, at 01/07/2018 0.5 minimum contract | DAX: today 1 contract minimum, at 01/07/2018 0.1 contract minimum | etc …

    This would be the best answer for ESMA, and I do not think it’s insurmountable for PRT CFD.

    I am waiting for your opinion on this question, which questions the future of small investors.

    Gertrade

    03/30/2018 at 3:21 PM #66804
    JC_Bywan

    Please, no double post, please choose if you prefer keeping this post in english forum or the same post you made in the french forum, and I’ll delete the one not prefered

    03/30/2018 at 3:33 PM #66808
    Gertrade

    I prefer to keep the post in English.
    Thank you

    Gertrade

    1 user thanked author for this post.
    avatar JC_Bywan
    03/30/2018 at 7:21 PM #66826
    GraHal

    Sounds a good idea Gertrade, but I guess IG will only do it if they have to … as in loads of clients stop trading and IG revenue declines and IG have to think of ways to get clients on board again?

    1 user thanked author for this post.
    avatar Gertrade
    03/30/2018 at 8:25 PM #66829
    Eric

    Yes i hope they change the min trade size to the same as in their metatrader account

    I hope they dont do the opposite and raise the min account size by 10 and go for the traders with more money at stake and leave us small traders outside in the cold

     

    1 user thanked author for this post.
    avatar Gertrade
    03/30/2018 at 9:37 PM #66834
    Vonasi
    Eric wrote:

    I hope they dont do the opposite and raise the min account size by 10 and go for the traders with more money at stake and leave us small traders outside in the cold

    At the moment that appears to be the way they are going. They are really pushing for those who can to sign up for professional status and shoving others onto limited risk accounts that give limited incentive to trade. I guess that once it becomes more difficult to extract money from the masses of small fry traders then the amount of customer service etc that they require to service becomes non cost effective. If they reduce the stakes then they just have the same overheads in return for a percentage return from a much smaller pie.

    1 user thanked author for this post.
    avatar Gertrade
    03/30/2018 at 9:58 PM #66836
    Gertrade

    Thank you for your answers.

    But I can not imagine that IG and PRT are abandoning a significant part of their clientele who will never be professional according to their criteria.
    This is why we must defend this idea that gives us flexibility in the rigidity of the ESMA that does not protect us at all.
    On the other hand, the reduction that I demand at the level of each contract, in my opinion is a factor of success, both for manual trading and for automatic trading.

    cordially
    Gertrade

    03/31/2018 at 10:23 AM #66856
    Vonasi

    Yes but if IG divide the amount staked by ten then they have just reduced the amount traded on their platform by 90%. They make a percentage profit of all money traded so that is a massive reduction in their profits and yet their overheads/workloads have not altered at all.

    It would be great if they did but I have my doubts that they will. The future is uncertain and it appears that we have no say in it.

    1 user thanked author for this post.
    avatar Gertrade
    03/31/2018 at 10:52 AM #66858
    Eric
    Vonasi wrote:

    Yes but if IG divide the amount staked by ten then they have just reduced the amount traded on their platform by 90%. They make a percentage profit of all money traded so that is a massive reduction in their profits and yet their overheads/workloads have not altered at all. It would be great if they did but I have my doubts that they will. The future is uncertain and it appears that we have no say in it.

    Yes if they think that we are all losers that trade min size?

    But think of it this way if you start small and are profitable you will soon trade bigger size

     

    03/31/2018 at 11:04 AM #66859
    Gertrade

    If IG and PRT do not do anything, there will be scrapping among no-professionals like us.
    I do not understand that we are so few to respond.

    03/31/2018 at 11:21 AM #66860
    Vonasi

    The brokers don’t care if we are small or big – they just balance their books and always come out on top by a certain percentage. So what is their incentive to work for 10p in the pound compared to working for the full £1. Very little. If you blow up your account they don’t make more because they will have lumped your trade in with everyone elses and just balanced their own trades against that trade book.

    These new regulations that increase the cost of trading mean that fewer new traders are likely to be attracted to trading. So working for a trade book that is a tenth of the trade book that you used to work with and that has fewer traders too is going to be difficult to justify.

    Maybe the days of 95% of traders losing will be over and just those who can afford it or are good at it will be left and the brokers will have to adjust their business model to this new world.

    I too am surprised that there is not more outrage at the changes. I guess people just feel that they can make no difference to the decision so why bother being outraged. In a few years time all will be forgotten and this big change will just become the new norm. Some of us will still be trading and others will not.

    2 users thanked author for this post.
    avatar GraHal, avatar Gertrade
  • Author
    Posts
Viewing 11 posts - 1 through 11 (of 11 total)

Find exclusive trading pro-tools on ProRealCode Marketplace

Similar topics:
big increase in price
calculated instrument. index creation automatic rebalancing
conversion of indicator smart money interest index from tradingview
ema for heng seng index in demo does not work
force index with atr channels
how to create a forex pairs index?
ig index psar and prorealcode psar are returning different crossovers.
reverse engineered composite index

Create your free account now and post your request to benefit from the help of the community
Register or Login