IG Securities, the Japanese subsidiary of electronic trading major IG, will increase margin rates for CFDs based on certain stocks, known as meme stocks.
Due to the recent volatility in meme share prices, the brokerage has decided to increase the maintenance margin percentage for new positions as well as for positions held in some individual CFD stock brands.
The list of stocks subject to the retention margin rate increase is as follows:
This change is scheduled to take place today, May 15, 2024 at 9:00 PM. (Tokyo time).
The percentage of maintenance margin required to hold a position will increase, so a larger amount of maintenance margin will be required than before.
If you continue to hold positions in these shares after the change, the latest maintenance margin percentage will apply. For this reason, loss cuts may occur due to insufficient margin. Please always monitor the location and status of your account.
There will also be a change in the ‘applicable margin rate’ of the ‘fluctuation margin system’ where the maintenance margin rate increases gradually depending on the total number of seats. Check the “applicable margin rate” on the trading platform.
IG warns that spreads can widen when market prices change suddenly due to natural disasters, when liquidity is reduced on weekends or early in the week, and when important economic indicators are announced.