CFD / Spread Betting Fee's

[RobertWood]

I  have looked in spread betting and CFD accounts and understand the benefits on each account. 

I need help understanding the Fee's on both of these it says you charge the Libor + 2.5% /3% for mini's what Libor is this UK or US and what is the term of the Libor. Would like to confirm this combined rate will only be charged on the amount borrowed for the rest of the margin.

When using the demo accounts for the spread betting account the minimum contract size was huge ETF's some positions needs to be £2000+ without any maintenance margin. Also it states 75% maintenance margin required would this mean stock total exposure of £2500 (initial margin = £125)  I would need at least £7500 available as the maintenance margin or would it be you need 3 x initial margin £375 as the maintenance margin.

Thanks

[Caseynotes]

On 04/04/2021 at 20:44, RobertWood said:

I  have looked in spread betting and CFD accounts and understand the benefits on each account. 

I need help understanding the Fee's on both of these it says you charge the Libor + 2.5% /3% for mini's what Libor is this UK or US and what is the term of the Libor. Would like to confirm this combined rate will only be charged on the amount borrowed for the rest of the margin.

When using the demo accounts for the spread betting account the minimum contract size was huge ETF's some positions needs to be £2000+ without any maintenance margin. Also it states 75% maintenance margin required would this mean stock total exposure of £2500 (initial margin = £125)  I would need at least £7500 available as the maintenance margin or would it be you need 3 x initial margin £375 as the maintenance margin.

Thanks

Hi, not sure on all your questions, it's UK Libor for UK assets and US Libor for US assets, each is a the shortest term, am presuming you are talking overnight funding fees which are payable on long trades but credited on short trades.

Worked examples here Why is overnight funding charged and how is it calculated? | IG UK

Remember, if you are intending to hold for the long term check if there is a Futures market instead which has a higher spread but no overnight funding.

For Margin check the deal ticket as to margin needed to open a trade, if the trade goes against you more margin (maintenance) will automatically reduce the amount of 'Funds available' in your account.