Margin Closeout 50 %

[gand356]

Hi all - new trader looking for help - can anyone explain the 50 % closeout rule (UK/Britain focused) - for example - with a small £ 1000 spread betting account: - 30:1 Forex pairs

EUR/DOLLAR - 1.0984
£ 1 per pip quantity
Initial Margin to open position - 30:1 - (3.33 %) - 333 x 1.0984 = £ 365

Is the 50 % close out:

Never drop below - 2 x 365 = £ 730 whilst the position is open
Never drop below - 1000 - 365 = 635 - 635/2 = £ 317.5
Never drop below - 365/2 - £ 182.50 - - I think it might be this one, but I'm not sure how you'd ever get that low with 1 position open at a time ???

not sure at all how this works - grateful for any help - thanks, Gand

 

[Mysteron]

Hi all - new trader looking for help - can anyone explain the 50 % closeout rule (UK/Britain focused) - for example - with a small £ 1000 spread betting account: - 30:1 Forex pairs

EUR/DOLLAR - 1.0984
£ 1 per pip quantity
Initial Margin to open position - 30:1 - (3.33 %) - 333 x 1.0984 = £ 365

Is the 50 % close out:

Never drop below - 2 x 365 = £ 730 whilst the position is open
Never drop below - 1000 - 365 = 635 - 635/2 = £ 317.5
Never drop below - 365/2 - £ 182.50 - - I think it might be this one, but I'm not sure how you'd ever get that low with 1 position open at a time ???

not sure at all how this works - grateful for any help - thanks, Gand

This is an excerpt I had in an email from FXCM in 2018 which explains what they do:

 

[gand356]

Thanks Mysteron, that explains it - is there any typical scenarios in which that could happen? I guess that means you can't open multiple positions on a small account

 

[Madalyn]

Useful explanation that