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Obviously they are going to insist on 100%, just put up the margin, what’s the big deal? It’s near enough a sure win when/if it does come out of suspension.
What’s you daily interest?
Morning Guys, providing an update so that hopefully this can be of help to others.
Spoke to IG and it went sour very quickly (at first) as I allowed my emotions to get involved. Basically, they would not accept my request to keep the margin at 50%, and insisted on the increase of 100% which they action yesterday. What this has done, is put my account P&L in a minus amount. I did managed to get out of them that as long as the P&L amount is less than 50% of the margin in my account, my NMC position will remain open and I do not need to add more funds, however I can not do other new trades, since my P&L is in the minus which is probably a good thing ATM with the volatility of the market.
Thanks Rasstuss and Castaway for your input/advise.
The bookies always win in the end
IG will be within their rights to enforce 100% margin. It’s a synthetic market so they are entitled to close you at the last prevailing price (for you, at a loss)
Don’t bother wasting your energy fighting them, it won’t work (I’ve been there). Just cover the margin and wait to collect your profits when nmc shares are worthless.
Are you willing to disclose the amount needed to cover your margin? I can borrow you the money if you want to split the profits ha
Are nmc staff paid this month?
Let me takeover your position lol. Guaranteed pay out.
IG are probably acting within their T&C's. I think if they were going to close you out they would have done so by now. If you cannot cover the extra margin I would just leave it as it is - chances are it will be resolved in the next few weeks with NMC, one way or the other and you will get your cash.
Spoken to IG again and they are sticking to their bureaucratic position based on their standard procedures i.e. they have requested all their client holding IG position (long or short) to increase the margin to 100%. I need to write a formal complaint letter to IG before I can take this to the FCA. Can anyone help/support to structure the complaint from a technical perspective? e.g if they are in breech of any trading rules, or are they entitled to change the margin as and when it suits them and covers all their risks.
The outcome I would be looking for is; keeping the current margin at 50%. To clarify, I would like to keep the position open although do not have the additional funds to cover the additional margin.
@ Rastuss, thanks for your about the etiquttes. In regards "did you mention to them that the FTSE Index appears to be substituting the ADR price for the LSE price of NMC shares?"
I didn't mention the IG as TBH I dont understand what this means? can you clarify?
@Castaway, definitely I would like to hold my current position, however this means I have to add a significant amount, and that could sit there for a very long time.
Morning Newbie, I cannot understand how IG can insist on 100% margin if your short, but I suppose it may be better to cover it if you can. If NMC does go into admin they may refuse to pay out?
Morning, spoke to IG this morning and they are adamant that I must have enough margin (i.e. from currently 50% to 100%) so cover my position otherwise it would be closed. Any guidance what I should do in terms of escalation? to which ombudsman? and can I get this done before IG deadline of margin increase 31/03 12pm?
P.S. as mentioned before, I am very new to all of this, hence if my etiquette is not right please let me know. E.g. is this the right forum to be posting this subject as I understand a lot of people (including myself) may lose a lot of money and also shorter are seen as negative to the market place.
No they can't Newbie - even if you were long they cannot close you out until/if NMC goes into admin - you stated your short, You have nothing to worry about, call them and tell them your short and you should get your margin back. If you want you can add funds it won't make any difference to your position - phoning them will though.
Thanks Castaway, although if I don’t put in funds, they could close my position.
Newbie - I would phone IG tomorrow and state you have a short and they should reduce your margin to the normal amount for your trade - but do not add funds!, IG can only take what you put in your account.
yeah on friday i was down 1400 then ten minutes later cashed in a 400 profit ,mad . think i am going to make lots of small bets on the peaks and troughs . Made about 200 trades on IG last week but made 5k
Who knows tindrum my advice stay put. Dont do nothing til ftse hits 4000. Bear market rallies are vicious can easily bounce 800-1000 points up as we saw last week.
Hi Mr D
After massive loses here! at least made 5k following the markets spread betting last 6- 7 days . Do we think down next week ?
Thats my thinking with some short squeeze on the US market.
Yes could be 5 yrs... and in that time nmc could of brought out the vaccine for covid 19 and open up at £25.
My open position is a SB on IG.
So I guess my only choice (if IG doesn’t accept my request of holding current position of 50% deposit) is, to add more funds and wait for the outcome, which could be weeks, months, or even years?
Rastuss, maybe Newbie can confirm if he was short or had a short on CFD or spread bet - but either way with NMC suspended and looking in a bad way if he was short he should not have the margin at 100%. I did not try shorting NMC on IG, but in my experience it's usually only possible to short via SB/CFD.
The outcome is more or less that same, if the company goes into admin with a SB/CFD - you get 100% of the short - if you are short of shs then I belive you have to acquire them to close the short - not difficult if they have no value.
Tough one. When you have a short position on a share which is suspended, you are in a kind of limbo unfortunately. Until the company officially announces it is going into admin and there is nothing left for shareholders (ie shares are worth '0p') your position is still considered 'open'. Normally you would close it by buying equivalent number of shares back. Obviously you cannot do that during suspension. The trouble seems to be that even if the company delists and goes private etc but still survives, it is still not considered 'bust' even though you cannot trade the shares.
Rastuss - as I understand it Newbie has enough margin to cover his current loss, but not enough to cover the 100% margin IG imposed. So his account will show a huge -ve margin - IG probably just put 100% on all positions in NMC when it was suspended as it is very high risk. This stops them losing as much and stops their clients removing cash which may be called to cover the loss on any longs on NMC. I cannot see how they can impose a 100% margin rate on a short though with NMC in it's current state.
Newbie under the new MiFID rules (from a couple of years ago) IG can only take the cash in your account and not demand any more. I would phone them and ask why they have imposed 100% margin on your short when the company is probably bust (or not far off it). IMO you have nothing to worry about, in fact you will probably one of the few who do very well out of this debacle.
Absolutely agreed, I’m out if my depth. Not sure how I got myself into this, and even more confused/stressed how I’m going to get out of this.
I was going to call IG, although wanted to get advise/guidance from more experience traders. If IG say I have to put down 100%, do I have any choice? E.g. if I don’t add more funds, they would just close my current position and I’ll eat the loss between £8.50 and £9.38.
Newbie, I would call IG, I can understand if you were long they would want 100% margin - but as your short I would think odds on that if NMC comes out of suspension he s/p will probably be lower, so I would think if you ask IG they will reduce your margin to normal - Odd that a Newbie would be shorting though isn't it? ;-)