Our tiered margining system means we can offer rates that remain competitive while reflecting the size of your position and associated liquidity of the market.
All trading involves risk. Losses can exceed deposits.
Margins
All trading involves risk. Losses can exceed deposits.
What is margin?
Margin trading gives you full exposure to a market using only a fraction of the capital you’d normally need.
Margin is the amount of money you need to open a position, defined by the margin rate.
For example: if you were to buy £1000 of shares through a traditional broker, you’d need to pay the full £1000 upfront to own them (plus the associated broker charges).
As a spread bet or CFD is a leveraged product, you don’t need to pay the full value of your exposure in order to deal. Instead, you’ll only need to put up a fraction of your total exposure to open your position.
There are two types of margin to consider:
Initial margin
The initial margin is the minimum amount you’ll need to put up to open a position. It is sometimes called the deposit margin, or just the deposit.
Maintenance margin
The maintenance margin, also known as variation margin, is extra money that we might need to request from you if your position moves against you. Its purpose is to ensure you have enough money in your account to fund the present value of the position at all times – covering any running losses.
Margin at IG
At IG we offer competitive margins across our full range of markets.
Tiered margining
Smaller deal sizes generally benefit from better market liquidity and these positions attract our lowest margin rates.
Things to remember
- Ensure you have enough funds in your account to cover both margin and losses. If there isn't, you may be put on margin call.
- Your CFD and spread betting accounts are margined independently: funds in one account will not cover the margin requirement or losses in another.
- Limit potential losses and reduce your margin requirement by using stops (tier one only).
Our margin requirements
Here's a summary of our tier one margin requirements for some of our most popular markets. For all tier one margins, you can reduce your margin requirement with the use of stops.
See each market's charges and costs for individual margin rates.
Shares |
Spread betting |
CFDs |
|---|---|---|
| Apple | 5% | 5% |
| Barclays PLC | 5% | 5% |
| BHP Billiton PLC (LSE) | 5% | 5% |
| GlaxoSmithKline PLC | 5% | 5% |
| Vodafone Group PLC | 5% | 5% |
Stock index |
Spread betting |
CFDs(margin per contract) |
|---|---|---|
| FTSE 100 | 1% | 1% |
| Wall Street | 1% | 1% |
| Germany 30 | 1% | 1% |
| US 500 | 1% | 1% |
| US Tech 100 | 1% | 1% |
Commodities |
Spread betting |
CFDs |
|---|---|---|
| Spot Gold | 0.7% | 0.7% |
| Spot Silver (5000oz) | 2% | 2% |
| High Grade Copper | 1.5% | 1.5% |
| Oil - US Crude | 1.5% | 1.5% |
| Oil - Brent Crude | 1.5% | 1.5% |
See our full tiered margin list for spread bets (PDF, 777KB) and CFDs (PDF, 777KB). Please note, preferential rates may be available for tiers three and four. Please see our premium services for more information.
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Shares
Share margins
Margin requirements for both CFD and spread betting positions with non-guaranteed stops are capped at the amount of margin for no stop (ie if the stop is wide then the calculations used may give a higher margin requirement than the calculation for no stop. If this happens then we limit the margin to the amount required for the same position with no stop).
|
Spread bet |
CFD |
|---|---|---|
No stop |
Bet size x price (in points) x deposit factor (%) E.g. £10/point Vodafone at a price of 194: £10 x 194 x 5% = £97 margin
|
Number of shares x share price x margin percentage E.g. 1000 Vodafone shares at a price of £1.94: 1000 x 1.94 x 5% = £97 margin |
Stop |
(Deposit requirement for no stop x slippage factor %) + (bet size x stop distance from current level) E.g. £10/point Vodafone at a price of 194, with a non-guaranteed stop 3 points away: (£97 x 30% + (£10 x 3) = £59.10 margin |
(Margin for equivalent trade with no stop x slippage factor) + value per point* x stop distance E.g. 1000 Vodafone shares at price of £1.94, with a non-guaranteed stop 3 points away: (£97 x 30% + (£10 x 3) = £59.10 margin * Note: 100 UK shares = £1 per point, 100 US shares = $1 per point, 100 Euro shares = €1 per point etc
|
Guaranteed stop |
The larger figure of the two calculations below:
E.g. £10/point Vodafone at a price of 194, with a guaranteed stop 11 points away and 0.3% limited risk premium. |
The larger figure of the two calculations below:
E.g. 1000 Vodafone at a price of £1.94, with a guaranteed stop 11 points away and 0.3% limited risk premium. Calculation 1: (£10 x 11) + (1000 x £1.94 x 0.003) = £115.82 margin So margin requirement is £115.82 (the larger figure of the two). |
Forex
Forex margins
Margin requirements for both CFD and spread betting positions with non-guaranteed stops are capped at the amount of margin for no stop (ie if the stop is wide then the calculations used may give a higher margin requirement than the calculation for no stop. If this happens then we limit the margin to the amount required for the same position with no stop).
| Spread bet | CFD | |
|---|---|---|
No stop |
Bet size x price x margin percentage E.g. £5 GBP/USD: £5 x 15500 x 0.5% = £387.50 margin
|
Number of contracts x contract size x price x margin percentage E.g. 2 contracts GBP/USD: 2 x £100,000 x 1.5500 x 0.5% = $1,550 margin |
Stop |
(Deposit requirement for no stop x slippage factor %) + (bet size x stop distance from current level) E.g. £5/pt GBP/USD with a non-guaranteed stop 20 points away: (£387.50 x 50%) + (£5 x 20) = £293.75 margin
|
(Margin for equivalent trade with no stop x Slippage Factor) + (Number of contracts x value per point x stop distance) E.g. 2 contracts GBP/USD with a non-guaranteed stop 20 points away: ($1.550 x 50%) + (2 x $10 x 20) = $1,175 margin |
Guaranteed stop |
The larger figure of the two calculations below:
E.g. £5/point GBP/USD with a guaranteed stop 20 points away and 1-point limited risk premium. |
The larger figure of the two calculations below:
E.g. 2 standard contracts GBP/USD with a guaranteed stop 20 points way and 1-point limited risk premium. Calculation 1: (2 x $10 x 20) + (2 x $10 x 1) = $420 margin So margin requirement is $1,550 (the larger figure of the two). |
Indices
Stock index margins
Margin requirements for both CFD and spread betting positions with non-guaranteed stops are capped at the amount of margin for no stop (ie if the stop is wide then the calculations used may give a higher margin requirement than the calculation for no stop. If this happens then we limit the margin to the amount required for the same position with no stop).
|
|
Spread bet | CFD |
|---|---|---|
No stop |
Bet size x price x margin percentage E.g. £10/ point of the FTSE 100: £10 x 6600 x 0.5% = £330 margin |
Number of contracts x contract size x price x margin percentage E.g. one contract of FTSE 100: 1 x £10 x 6600 x 0.5% = £330 margin |
Stop |
(Deposit requirement for no stop x slippage factor %) + (bet size x stop distance from current level) E.g. £10/pt of the FTSE 100 with a non-guaranteed stop 12 points away: (£330 x 50%) + (£10 x 12) = £285 margin |
(Deposit requirement for no stop x slippage factor %) + (number of contracts x contract size x stop distance) E.g. 1 contract FTSE 100 with a non-guaranteed stop 12 points away: (£330 x 50%) + (1 x £10 x 12) = £285 margin |
Guaranteed stop |
The larger figure of the two calculations below:
E.g. £10/point FTSE 100 with a guaranteed stop 12 points away and 1-point limited risk premium.
|
The larger figure of the two calculations below:
E.g. 1 contract FTSE 100 with a guaranteed stop 12 points way and 1-point limited risk premium. Calculation 1: (1 x £10) + (12 x £10) = £130 So margin requirement is £330 (the larger figure of the two). |
Commodities
Commodity margins
Margin requirements for both CFD and spread betting positions with non-guaranteed stops are capped at the amount of margin for no stop (ie if the stop is wide then the calculations used may give a higher margin requirement than the calculation for no stop. If this happens then we limit the margin to the amount required for the same position with no stop).
|
|
Spread bet | CFD |
|---|---|---|
No stop |
Bet size x price x margin percentage E.g. £10/point of Oil - US Crude: £10 x 3350 x 1.5% = £502.5 margin |
Number of contracts x contract size x price x margin percentage E.g. one contract of Oil - US Crude: 1 x $10 x 3350 x 1.5% = $502.5 |
Stop |
(Deposit requirement for no stop x slippage factor %) + (bet size x stop distance from current level) E.g. £10/pt Oil - US Crude with a non-guaranteed stop 12 points away: (£335 x 50%) + (£10 x 12) = £287.50 margin |
(Deposit requirement for no stop x slippage factor %) + (number of contracts x contract size x stop distance) E.g. one contract Oil - US Crude with a non-guaranteed stop 12 points away: ($335 x 50%) + (1 x $10 x 12) = $287.50 margin |
Guaranteed stop |
The larger figure of the two calculations below:
E.g. £10/point Oil - US Crude with a guaranteed stop 90 points away and 4-point limited risk premium. |
The larger figure of the two calculations below:
Eg One contract Oil - US Crude with a guaranteed stop 90 points way and 4-point limited risk premium. Calculation 1: (4 x $10) + (90 x $10) = $940 margin So margin requirement is $940 (the larger figure of the two). |
Tiered margining
What is tiered margining?
Tiered margining enables us to set margin rates that reflect and best fit the size of your aggregate position* in a particular market. The majority of positions will attract our lowest margin rates, reflecting the liquidity of the market at smaller deal sizes. The largest positions may require greater margin, as it is more difficult to trade out of these positions quickly.
We will determine your initial margin using a table of four incremental tiers. The margin rate will increase progressively as your aggregate position moves up from one tier to the next. However, only the portion of your position that falls into a higher tier will be subject to its increased margin rate.
The range of the four tiers differs for every market.
See our tiered margining list for share spread bets and share CFDs. For our tiered margining levels on other markets, please use Get Info inside our dealing platform.
*For the purposes of tiered margining, your aggregate position includes your non-limited-risk open positions and orders to open.
Margin factor
Margin factor
Margin factor is the variable used to multiply your bet size, to define your margin requirement.
Contact us
We're here 24hrs a day from 8am Saturday to 10pm Friday.
You can also email us at newaccounts.uk@ig.com
