What is ESMA initial margin?

As of August 1st 2018, the European Securities and Markets Authority (ESMA) mandates minimum initial margin levels and requires IB UK to liquidate open positions if the qualifying equity in your CFD account (cash and unrealized CFD P&L) falls below 50% of the initial margin requirements for all CFD positions. In addition, IB UK establishes its own maintenance margin requirements (IBKR Margin) based on the historical volatility of the underlying, and other factors detailed below. In relation to retail investors, IB UK will apply the IBKR Margins if they are higher than those prescribed in the ESMA measures. Reflecting the 50% close-out rule, initial IBKR Margins will be set as 2 times the maintenance margin requirement.

You can find an extensive description of CFD margin requirements on our website.

Additional Information

Powered by IBot