RE:RE:RE:Today's Topic/Theme on ADVFN is Margin and Margin Calls. Not quite. When I say 10% margin requirements it means the buyer only has to put up 10% of the purchase price of the stock.
so if you want to buy £20k worth of stock you only have to put up £2k. The broker (IG) then hedges this with another prime broker/big institutional bank who I imagine will buy the actual £20k worth of shares to hedge the risk.
The big bank have decided not enough profit holding large volumes of these types of stock (they want to chop you on the ETF/big shares)
for clarity 10% margin is generally for professionals in these type of shares. I think it's around 25% for non professionals. IG confirm they have 11-50 positions open. Will be interesting to see how many they report tomorrow