LOW MARGIN RATES – SMALL INITIAL DEPOSIT
Our low margin requirements give you market exposure for a proportional initial outlay. We offer different margin rates for retail and professional clients. A retail client could open a £1 per point position on UK 100 for a deposit of £380. A pro client could open this position for just £38.
To open any position you need to have some funds on your account. The amount required – known as the margin – is different for each market. We keep our margins as low as we can for retail and professional clients.
Your initial margin is calculated as a percentage of your full position value. For example, the margin rate for UK 100 (for retail clients) is 5%. Supposing the bid price is 7600, you could sell the UK 100 for £1 per point for an initial outlay of £7600 x 5% = £380.
Retail and professional clients
Professional clients have access to our best margin rates. For instance, due to regulations the best margin rate on equities we can offer a retail client is 20%. But a professional client can trade major UK shares at a margin rate of just 5%.
A professional client could therefore buy £5 per point of Vodafone (supposing the ask price is 188.00) for an outlay of £47. This would give you the equivalent exposure to buying 500 actual shares at the full market price.
Professional clients on the web and advanced platforms can also reduce their margin requirements by using stop-loss orders. This is known as order-aware margining. Your margin is then calculated as 50% of the normal margin requirement, plus your risk per point multiplied by your stop distance (so long as this total is less than the normal margin requirement).
You should note, however, that your margin requirement will increase if you move your stop further away from your opening level, and that stop-loss orders are not guaranteed and may be subject to slippage and market gaps in volatile market conditions.
For more information see our online support: