Doo Prime adjusts margin requirements on select US stock CFDs to 20%
Doo Prime adjusts margin requirements on select US stock CFDs to 20%
Doo Prime has announced a change in margin requirements for select U.S. stock contracts for difference (CFDs), effective October 29, 2024.
The adjustment raises margin requirements to 20% for certain major U.S. stocks, aiming to enhance market stability and support traders in managing leveraged positions, according to the broker.
The affected stocks span a broad range of sectors, including technology, healthcare, and finance. Companies impacted by this margin update include industry giants such as Pfizer Inc, Microsoft Corp, Apple Inc, NVIDIA Corp, and Amazon.com Inc, as well as popular companies like Starbucks Corp, Zoom Video Communications, and Walt Disney Co.
By increasing the margin to 20%, Doo Prime aims to address market fluctuations and assist clients in mitigating risks associated with the high volatility of equity CFDs.
For traders, this adjustment means they must now hold 20% of the total position size as collateral when trading these specified U.S. stock CFDs. This increase requires a higher capital allocation on each position, impacting traders who use leverage to maximize gains. Doo Prime has advised clients to review and adjust their positions accordingly to align with their trading strategies and risk management needs.
The decision to increase margin requirements on these U.S. stocks is part of a broader trend among brokers responding to recent market volatility and regulatory changes. Higher margin requirements are often employed to safeguard both brokers and clients by ensuring that sufficient funds are available to cover potential losses in leveraged trades. Doo Prime’s proactive measure underscores its commitment to stability and risk management, providing clients with greater control in uncertain markets.
Doo Prime has emphasized that its support team is ready to assist with any questions or concerns regarding the margin changes.
Clients of Doo Prime and other brokers that adjust margin requirements will need to adapt quickly to maintain their trading goals and risk profiles.
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