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More information

A New Margin Requirement for Hedged Positions

In line with the latest developments of our multi-asset class offering, we have decided to update the margin requirement for hedged positions in the same instrument.

Instead of the current 0% margin for a hedge, we will require 20% from the initially required margin for each of the positions opened in the hedge. This change will be applied between 7 a.m. and 8 a.m. GMT on Thursday (16/01/2020). Please refer to the example below for further clarification.

EXAMPLE

If you open a long position of 1 lot in EUR/USD with a margin requirement of 3.33%, you will need to have 3330 EUR in your account balance to sustain it.

Current scenario:
Once you open a short position of 1 lot in the same instrument, the required margin automatically drops to zero (0 EUR) with no funds required to sustain the two positions until you break the hedge.

New scenario:
As of Thursday (16/01/2020), once you open a short position of 1 lot in the same instrument, the required margin until you break the hedge will be 20% of the 3.33% required margin for each of the two standalone opened positions, i.e. 20% of 3330 EUR (666 EUR) for the long position and 20% of 3330 EUR (666 EUR) for the short position equalling 1332 EUR.

To get a full overview of the changes in all instruments, please refer to the updated Contract specifications as of Thursday (16/01/2020). It is strongly recommended that you monitor closely your accounts in the next days to make sure you have enough funds to sustain any open positions.

We believe that this change could further protect your trading accounts from potential overleveraging, especially during panic-like market movements.

Should you have any questions, our friendly, multilingual Client Service is ready to assist you 24/5.

We wish you successful trading!

The JFD Team