CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

Deposit margin definition

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Deposit margin has a particular significance in relation to IG's platform. Here, we define deposit margin in general investing and explain what it means to you when trading with IG.

Deposit margin is the amount a trader needs to put up in order to open a leveraged trading position. It can also be known as the initial margin, or just as the deposit.

It is one of two main types of margin needed to hold an open a leveraged position. The other is called maintenance margin. The amount needed as a deposit margin depends on the derivative being used and the market being traded. Markets with higher volatility will tend to require a higher deposit margin.

Deposit margin example

You want to open a CFD trade on 80 shares of Apple, when Apple shares are trading at $100 and Apple has a deposit margin requirement of 5%. The total value of your position is $8000, so the margin required is $400 (5% of 80*100).

With IG

CFDs are leveraged products, and as such will require a deposit margin. We tier our margin requirements depending on the size of your trade. Margins will also vary due to the market being traded, and whether guaranteed stops are used.

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Our office is open 5 days a week, Sunday to Thursday from 8am to 7pm (Dubai time). Support line is available 24hrs a day, 7 days a week, except for Saturday from 1am to 11am (Dubai time).

+971 (0) 4 559 2108

You can also email us at: helpdesk.ae@ig.com

 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.