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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
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CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.
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Question
Guest Sissyfuss
Hi appreciate if I buy an option outright, IG requires the entire premium cost as Margin.
if I buy a Put but then sell a lower strike Put (exact same expiry) does IG return any premium to me?
does IG only ask for the net premium (which would be logical as that is maximum loss to me)
for example 2900 spx puts March cost 90 say, so margin appears to be 90.
if I sell the 2800 spx puts March for cost 40, does IG still need 90 as margin, rather than 50 (my max loss).
appreciate this only holds if I pair the two trades and they remain paired, so maybe IG has a (sensible) formula for adjusting margin?
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