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What is deposit factor in the margin calculation for indices?


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Hi all,

Simple question, I was looking at how margin is calculated for indices and seems to be 20% on spread bets, but what does it mean by deposit factor?  Is it a just a known percentage that ig quote in some table of charges somewhere?  The calculation is different for Forex and i understand the components of that calculation.

Thanks for the help.

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56 minutes ago, u0362565 said:

Hi all,

Simple question, I was looking at how margin is calculated for indices and seems to be 20% on spread bets, but what does it mean by deposit factor?  Is it a just a known percentage that ig quote in some table of charges somewhere?  The calculation is different for Forex and i understand the components of that calculation.

Thanks for the help.

Hi, I think the deposit factor is used in the calculation for the margin amount required for opening the trade the same as margin factor would be used so presumably is expressed as a percentage as well. Margin is also called deposit margin. The margin factor for indices on spread bets is 5%, I think for US stocks it's 20%.

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27 minutes ago, Caseynotes said:

Hi, I think the deposit factor is used in the calculation for the margin amount required for opening the trade the same as margin factor would be used so presumably is expressed as a percentage as well. Margin is also called deposit margin. The margin factor for indices on spread bets is 5%, I think for US stocks it's 20%.

Ah ok got you, yes i've seen the charge charts where its 5% for indices but there its not called deposit factor but deposit margin i think. Thanks!

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