ThinkMarkets to Increase Margin on Share CFDs Due to Volatility

ThinkMarkets announced on Tuesday that the broker is increasing the margin requirement of several contracts for differences (CFDs) instruments due to ‘unprecedented’ volatility in the global equities market, causing a liquidity crunch.

“Due to unprecedented volatility and low levels of liquidity in the global equity markets, ThinkMarkets is increasing the margin requirements on a selection of CFD equity products across our MT4, MT5 and ThinkTrader platforms,” the broker noted.

In addition, it highlighted that the margin changes for some of the products were significant and urged traders to make sure that their accounts are ‘capitalized well enough to avoid a margin call’.

The changes in the margin requirements Margin Requirements A margin requirement is defined as the minimum equity sum that investors must keep in their margin account preceding a trading transaction. Margin requirements may be referred to as maintenance margin, minimum maintenance, or maintenance requirement. This is a requirement for broker trading in any asset class.In terms of equities, the New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA) have a fixed margin requirement of 25% of the sum value of the securities presen A margin requirement is defined as the minimum equity sum that investors must keep in their margin account preceding a trading transaction. Margin requirements may be referred to as maintenance margin, minimum maintenance, or maintenance requirement. This is a requirement for broker trading in any asset class.In terms of equities, the New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA) have a fixed margin requirement of 25% of the sum value of the securities presen Read this Term will take into effect from February 9, 2100 hours GMT.

A Global Broker

Headquartered in Australia, ThinkMarkets is one of the reputed global brokerage brands and is regulated in multiple jurisdictions. Offerings of the platform include trading services with forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and contracts for differences (CFDs) of indices, stocks, commodities and cryptocurrencies.

The brokerage platforms list more than a thousand share CFDs of the companies listed in several global stock exchanges.

Meanwhile, the broker is focused on the expansion of its services. It entered the institutional space last year with the launch of a United Kingdom-regulated multi-asset liquidity platform.

Moreover, ThinkMarkets is aggressively promoting its brand and inked a big-ticket sponsorship deal with Liverpool FC, one of the most popular English football clubs. Furthermore, the broker acquired a Japanese forex company last year to strengthen its presence in the Asian markets. It even opened an office in Tokyo.