Not upheld: position closure execution and margin management complaint against IG Index Limited

Decision detail

Summary

Mr J complained that IG Index Limited failed to close his Germany 40 positions at the 50% margin level on 6 April 2025, resulting in a significant loss. He argued that IG had previously closed positions at this level and should have acted earlier as part of its duty of care. IG responded that under its terms, customers are responsible for monitoring margin and position closure at a specific threshold is not guaranteed, particularly in fast-moving markets. The ombudsman did not uphold the complaint, finding that IG acted fairly in line with its terms and that the outcome was due to fast-moving market conditions rather than any failing by the firm. No award was made.

The Ombudsman's reasoning

The ombudsman found that IG's terms clearly placed responsibility for monitoring margin on the customer and stated that position closure at a specific threshold is not guaranteed, particularly in fast-moving markets. The ombudsman noted that past instances do not create an obligation for identical outcomes in all market conditions. While firms must act fairly under FCA Principle 6, this does not mean they can prevent losses in volatile markets or guarantee execution at a specific level where terms clearly set out the risks and customer responsibilities. The rapid market movement explained why positions were not closed at exactly 50%.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website