• IG Securities to hike margin rates for CFDs on meme stocks due to price volatility.
  • New margin rates take effect from May 15, 2024, at 9:00 PM JST, impacting both new and existing positions.

IG Japan is increasing margin requirements for CFDs (contracts for difference) on certain volatile stocks, known as meme stocks. This move comes amid recent price swings in these popular yet risky investments.

IG Securities, the Japanese subsidiary of IG Group, is raising the bar for traders looking to leverage meme stocks through CFDs.

The brokerage will hike margin rates, impacting both new positions and existing holdings in specific meme stock CFDs. This change took effect on May 15, 2024, at 9:00 PM JST.

The increased margin requirement means traders will need to hold a larger amount of capital (maintenance margin) to keep their positions open.

Failure to meet the new margin threshold could result in automatic selling (loss cuts) to maintain account health. IG also warns of potential wider spreads during periods of market volatility, such as natural disasters, weekends, or key economic announcements.

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