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FTSE Margin Tier - question about thresholds


This may be a dumb question but where IG shows 4 tiers for margin rates on the FTSE 100 index, how exactly are the 'position sizes' calculated? I assumed 'position size' was equivalent to total exposure but that doesn't make sense given the thresholds shown below (from IG's product pages): 

Tier Position size Margin
1 0 - 200 GBP 5%
2 200 - 1000 GBP 5%
3 1000 - 2000 GBP 10%
4 2000 + GBP 15%


So if I was +£1 long on the FTSE DFB at an opening price of say 5,500, then my initial exposure to the FTSE would be £5,500 right? But then what is my 'position size'?. It can't be £5,500 or I would already be attracting margin of 15% with only a small position. What am I missing here?

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