Make your capital go further with leverage
When trading CFDs, you could stretch your capital further, as you only have to deposit a fraction of your trade’s full value to open a position. The deposit you’ll have to put down is called a margin. While this lowers the cost of opening a trade, it can also be very risky, as it’ll amplify your losses. This is because CFD profits and losses are calculated on the full size of your trade. Always take sufficient steps to manage your risk.
How much you’ll need to deposit depends on the size of your position and the margin factor for your chosen market. For example, many of our share CFDs have a margin of 5%, most major indices have a margin of 0.5%, cryptos typically have a margin of 10%, and most major forex pairs have a margin of 2.5%. Learn more about our CFD margin requirements.
For an easy way to find out the margin requirement for your trade – as well as the potential profit or loss – try out our CFD calculator. An example would be if you decided to trade CFD shares on BHP, which has a margin factor of 5%. In this case, a position worth CHF1000 would only require a deposit of CHF50.