What are IG's bonds CFD product details?

Bonds information table

All the instruments described on this site are Contracts For Difference (CFDs). Our Bonds give you exposure to changes in the value of interest rates and bond prices but they are cash settled and cannot result in the delivery of any commodity or instrument.

1. We will quote an 'all-in' spread that includes both dealing spread and market spread. The size of our dealing spreads are shown in the information tables. All dealing spreads are subject to variation, especially in volatile market conditions. We will not charge any additional commission unless we notify you in writing.

2. a) CFDs on bond futures are quoted with reference to the front month contract in the underlying futures markets. We do not apply any weighting or biases to our pricing sources.

Due to the transition of Eurodollar contracts to SOFR contracts, the Jun-23 contract will run to its expiry on 16/06/2023 and will settle based on the official closing level of the day. As CME is delisting Eurodollar contracts, the Jun-23 contract will expire and not be rolled. For more information about the transition of the Eurodollar contracts to SOFR contracts, please refer to https://www.cmegroup.com/media-room/press-releases/2023/4/24/cme_group_completeskeymilestonesinconversionofeurodollarfutureso.html

b) Spreads are subject to variation, especially in volatile market conditions. Our dealing spreads may change to reflect the available liquidity during different times of day. Our normal spread is shown in the table.

c) Dealing spreads may be offered as a fixed or variable amount. If variable spreads are in use, then the spread shown in this table is the amount of IG spread added to the underlying futures market spread. Any variable dealing spreads are marked with an asterisk (*).

d) We will not charge any additional commission unless we notify you in writing.

3. Positions not already closed by the client expire automatically on the following basis, plus IG spread:

• Bund, Bobl Buxl and Schatz at the Final Settlement Price of the relevant futures contract as determined by Eurex at 12.30 (Central European Time) on the last dealing day.
• Long Gilt based on the final settlement price of the LIFFE Long Gilt Future on the third last business day of the previous month.
• Japanese 10-year Government Bond at the final settlement price of the 10-year mini JGB futures as reported by SGX on the last trading day.
• 3-month Canadian Bankers' Acceptance Future based on the official closing price of the Canadian Banking Acceptance Future as reported by the Montreal Exchange.
• Medium Term Gilt (5-year) based on the final settlement price of the LIFFE Medium Gilt Future on the third last business day of the previous month.
• Short Term Gilt (2-year) based on the final settlement price of the LIFFE Short Gilt Future on the third last business day of the previous month.

4. For futures positions, unless expressly agreed otherwise with IG, positions will be rolled over to a later date by default. For most positions, a client can, before the position has been automatically rolled, ask for the position not to be rolled over to a later date. Rolling over a position involves closing the old position and opening a new one.

5. The Decimalised T-Bond is quoted in hundredths of a full Treasury Bond point (in the underlying market, T-Bonds are quoted in fractions of 1/32 of a full point) i.e., 10925 is equivalent to 109-08 in the underlying and vice versa. One contract is the equivalent of $10 per hundredth of a full point. The Decimalised T-Bond can be dealt online and is settled to the nearest 1/100th of a point (calculated by converting settlement provided by CBOT to decimal form). Contracts for T-Bonds expressed in the fractional form can only be traded by telephone.

6. When you trade in a currency other than your base currency your profit or loss will be realised in that currency and will be booked to your account in that currency. As a default, we will automatically, and on a daily basis, convert any positive or negative balance on your account in a currency other than your base currency to your base currency. You may change this default at any time by calling us or via our trading platform.

7. Only for Pro clients: for a position with an attached non-guaranteed stoploss order, the deposit requirement is calculated using the distance between the opening level of the position and the stop level and adding a factor for 'slippage'. The 'slippage' factor is calculated as 20 percent of the underlying (Trader) margin requirement. The deposit requirement for positions with non-guaranteed stops will not exceed the deposit required for positions without a stoploss.

8. Please note that Tiered Margining applies; this means that higher margins may be required for large positions. Margin requirements represent a percentage of the overall position value, and can vary depending on which account type you hold. You can find the applicable Tiered Margins from the Get Info dropdown section within each market in the trading platform.

9. For limited-risk transactions, a limited-risk premium is charged if your guaranteed stop is triggered. The potential premium is displayed on the deal ticket, and can form part of your margin when you attach the stop. Please note that premiums are subject to change, especially going into weekends and during volatile market conditions.

10. Overnight funding for bonds is based on the market cost of carry including an admin fee of 2.5% per annum.