Initial-Margin

Trading in CFDs gives you flexibility, as you don’t need to pay the full underlying value of a trade.

Typically, the margin is calculated as a percentage of the overall value of the trade, usually between 1% and 10%. For example, if all your trades are eligible for a 5% margin, you can hold positions worth a total of £100,000 even when you deposit just £5,000.

How to calculate margin – a share CFD example

• You wish to buy 3,000 Share CFDs at 150p. The share CFD has a margin requirement of 5%
• 3,000 x 150p = £4,500 (this is the value of the position)
• £4,500 x 5% = £225
• To hold the position, you need to deposit £225 as initial margin