CFD Funds Available

[Guest jojoonline]

Hi , 

I'm working through testing out things using the demo account. Most things are clear but one thing isn't. 

I started last night placing market positions totalling circa £150, starting at £10k. The margin is circa £15.50. What I don't get is that my funds or available is circa £9850. So it appears it's taking the full £150 share amount rather than the £15.50 margin ? Why is this I though the whole point of CFD is leverage. If it's holding funds equivalent to the full share price I might as well trade shares. Can someone help explain please.

Thanks

 

[Caseynotes]

Hi @jojoonline. Margin based on 20% (for shares) is calculated and subtracted from available funds, margin increases with increased stop loss and position size. I suspect the miscalculation of the margin is the main cause of the supposed short fall in the available funds so make sure you check the deal ticket which has the actual margin figure for each trade calculated for you and note it down before clicking 'place trade'. 

[JamesIG]

thanks  @Caseynotes

@jojoonline - let us know the exact trade you're doing? I imagine you have placed a £150 trade using up £150 margin, however you have actually bought £750 worth (roughly) of shares...