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How is margin payment amount has been calculated


Sachismo

Question

I am new to spread betting and recently made a couple of trades. I don't understand however how my margin payment amount has been calculated?

I know it is a percentage but a percentage of what exactly. A percentage of the share price and what?

 

Would really appreciate any help.

 

Regards

 

 

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On 04/12/2020 at 18:14, Sachismo said:

I am new to spread betting and recently made a couple of trades. I don't understand however how my margin payment amount has been calculated?

I know it is a percentage but a percentage of what exactly. A percentage of the share price and what?

 

Would really appreciate any help.

 

Regards

 

 

Hey, 

If you don't have any stops on your position the following is how you calculate your margin: 

Spread betting: Bet size x price x margin factor

CFD: Amount of contracts x contract size x price x margin factor

The margin factor can be found on the get info section on the deal ticket. Please note the margin factor can change the bigger your position gets. 

image.png

We calculate your margin with a non-guaranteed stop, compare it to the margin required without a stop, and charge the lower of the two figures as margin.

Spread betting = (Bet size x price x slippage factor x margin factor) + (size x stop distance)

CFD =  (amount of contracts x contract size x price x slippage factor x margin factor) + (size x stop distance)

With a guaranteed stop it's the largest of the calculation below or the first calculation (margin without stops). 

Spread betting = (bet size x stop distance) + limited-risk premium2

CFD = (amount of contracts x contract size x stop distance) + limited-risk premium2

 

All the best 

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