ASIC leverage and stop out requirements are ridiculous

Hi Guys,

                    I just got this email from Peperstone here in Australia.

This is outrageous, Ctrader has the ability to try and keep your account live by only closing out the positions it needs to to keep you within the 50% margin call.

I doubt that CTrader even supports the ability to configure its auto management of margin calls.

I don't think my team will be trading in Australia any more.

Best Regards,

                      Alistair

Compulsory margin close-outs

If the funds you hold in your account fall to less than 50% of the total initial margin required for all of your open trades, there is a requirement to close out your positions.

---------- Forwarded message ---------
From: Pepperstone Support <support@pepperstone.com>
Date: Mon, Oct 26, 2020 at 10:18 PM
Subject: ASIC Product Intervention confirmed for 29 March 2021
 

 Login    Hi Alistair,

ASIC has released an announcement that will change the way we can offer our products and services to retail clients trading with Pepperstone Group Limited, our ASIC licensed entity.

The changes include leverage reductions, negative balance protection, changes to margin close-out and some restrictions on certain inducements. You can find out more about these changes on our website. or read the full ASIC media statement. We’ll be communicating more detail around these changes in the near future.

When will this happen?
Nothing will change until March 2021. ASIC has been discussing implementing potential changes and possible product intervention for over a year. During that time, we’ve worked hard to ensure our systems and processes are ready to support you and continue to deliver an exceptional trading experience.

Who do these changes affect?
These changes only apply to retail investors. We’ve set up a new client classification called Pepperstone Pro, enabling those who are eligible to apply to be recognised as a wholesale investor. Learn more about becoming a Pepperstone Pro, including what’s required to apply and what protections you’ll lose.

If you have any questions in the meantime, we’re here to help. Simply get in touch at support@pepperstone.com or visit our support hub.

Kind regards,
The Pepperstone Team