2. A margin close out rule on a per account basis. This will standardise the percentage of margin (at 50% of minimum required margin) at which providers are required to close out one or more retail client’s open CFDs;
Hantec Markets shall close one or more of a retail investor’s open CFD positions on terms most favourable to the client in accordance with Articles 24 and 27 of MiFID II when the sum of funds in the CFD trading account and the unrealised net profits of all open CFDs connected to that account falls to less than half of the total initial margin protection for all those open CFDs.
You have $2000 in your account, and you open a Gold position that requires £1,000 margin. 50% of the initial margin requirement for the Gold position is £500. If your equity falls from your original £2000 to £500 or less, then your position/s will be closed automatically.
3. Negative balance protection on a per account basis. This will provide an overall guaranteed limit on retail client losses;
The purpose of a negative balance protection is to ensure that an investor’s maximum losses from trading CFDs, including all related costs, are limited to the total funds related to trading CFDs that are in the investor’s CFD trading account. This includes any funds yet to be paid into that account due to net profits from the closure of open CFDs connected to that account.
You should note that from 1st August 2018, under 1.1.3. of the Client Agreement, the main account and any sub-accounts, including accounts held in joint ownership constitute a single contractual agreement and are treated as one account for the purpose of realized client balances. This means that all account opening conditions, agreements and provisions between us with regards to the main account are equally valid and applicable to all accounts held by you individually and jointly, and any realized negative balances may be netted against other accounts held in your name. Any account unrealized balances, positions, or margin requirements will not be netted against each other unless otherwise agreed in writing by both parties.
4. A restriction on the incentives offered to trade CFDs;
The marketing, distribution or sale to retail clients of CFDs is restricted to circumstances where at least all of the following conditions are met:
5. A standardised risk warning, including the percentage of losses on a CFD provider’s retail investor accounts.
These changes will take effect at the end of day on 31st July 2018.
Please ensure you have enough funds available in your account BEFORE 30th July 2018, when the margin requirement on ALL OPEN POSITIONS in your account/s will be increased. You can do this by adding additional funds to your accounts HERE and/or reducing the size of your open positions. Remember that margin used to open and maintain positions is not a fee and is returned to your account equity once a trade closes.
If you do not have sufficient equity in your account at the end of day on 30th July 2018, your positions may be closed.
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
66% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.