Investors who hold CFD positions under the ESMA rules are subject to Close-Out Protection under the ESMA CFD rules for retail investors:
ESMA mandates the close-out of CFD positions if CFD related equity falls below 50% of the initial regulatory margin posted. Note that equity for maintenance margin purposes includes unrealized CFD P&L. IBKR will not liquidate other instruments or transfer cash from another segment of your account to satisfy either a house or regulatory margin violation. Note, however, that we may liquidate CFDs or use excess CFD cash to cover a margin deficiency in a non-CFD segment of your account.
Please Note
- The ESMA rules apply solely to clients classified as retail. Clients that have been classified as professional are not affected by the above rules and do not benefit from the ESMA investor protection measures.
Additional Information
- Overview of FCA CFD rules implementation at IB (UK) - Retail investors only
- Overview of Central Bank of Ireland CFD Rules Implementation for Retail Clients at IBIE
- ESMA product intervention measures on CFDs and binary options available on the ESMA website