Changes to Initial CFD Margins for Retail Clients Resident in Spain

Overview

IBIE determines risk-based maintenance margins for CFDs, a violation of which results in liquidations until margin compliance has been re-established.

Due to Spanish regulatory requirements, IBIE applies specific initial margin rates for retail clients resident in Spain (“Spanish Retail Clients”). These measures do not apply to Spanish professional clients.

Initial CFD Margins for Spanish Retail Clients

IBIE typically sets initial margin at 125% of the maintenance margin. However, Spanish regulatory requirements prohibit liquidations of CFDs before 50% of the posted initial margin has been consumed by losses. The initial margin for Spanish Retail Clients is therefore 200% of the maintenance margin.

Other significant aspects of the rules for retail CFDs remain unchanged (e.g., only free cash can be used for margin, only CFDs can be liquidated to cover losses in CFDs, negative equity protection). Please see this article for more details.

Impact of the Changes

This increased Initial Margin Requirement will not impact your overnight Maintenance Margin Requirement. However, any increase in the Initial Margin requirement may adversely affect your ability to open new margin-increasing positions and withdraw funds. You may wish to review and/or adjust your positions or add more funds to your account to address the increased Initial Margin Requirements.