Oil and other indices margin requirements

[Khadeeja]

Hey , i am a newbie here and i have a question .

I was trading on demo initially and the deposits it required to buy 3-4 contracts of oil us crude , brent crude , ftse 100 cash $10 contract and us tevh 100 $10 contract was between $2500-3000.

 

Now all of a sudden it demands more deposit . Almost 4 times more . Is it going to go back to normal ? And why has it changed

[JamesIG]

Hi - there hasn't been a change based on the general margin, however if you specific circumstances have changed then this may have caused it (for example change of country, change of account status from regular to limited risk etc). Please give our trading services team a call and we can go through the specifics of your account, which unfortunately I can't do on a public forum. 

[Khadeeja]

I actually have contacted the help desk in this regard, and all they could answer is this " our regulations have been changed and the margin required to place trades on commodities, indices and forex has been increase 4 times to what it was before."

So james all of a sudden this has happened which is limiting users like me to place traders as freely as we were doing before . I have the account in UAE office. 

Are you sure that the regulations have not been changed and margin requirement has not been increased, and it may be because of change of status of my account? 

I am bound to reach you here because the help desk is not providing satisfactory answers . 

[JamesIG]

Let me look into this for you. I was unaware about the specifics of the UAE regulatory changes but will see what I can find out. Thanks. 

[JamesIG]

Hi - So in regards specifically to the UAE there have been a number of regulatory changes requested by the Dubai regulator. We emailed clients letting them know the following:

 

We would like to inform you that the Dubai Financial Services Authority (DFSA) has recently revised Supervisory Guidelines for firms offering services to Retail clients; due to these regulatory changes as of 15/12/2017 our margins on Indices, commodities, shares, interest rates and bonds will increase.

 

Margin Changes

• Major indices at 2%
• Minor indices at 5%
• Oil and Gold at 2%, all other commodities at 5%
• Shares starting at 10%
• Interest rate and bonds will start from a 5% margin

These changes will only effect new positions opened from 15/12/2017. Please ensure that you read the full list of margin changes on the different tiering structures carefully. Once the change comes into effect, you can view the revised margins on our website at www.ig.com/ae. As mentioned, this change comes in line with the new local regulation mentioned above. 

 

I hope this clarifies things for you. Let me know if you have any questions.