Margins

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.

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 R10,000 of shares through a traditional broker, you’d need to pay the full R10,000 upfront to own them (plus the associated broker charges).

As a 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 trade 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 account is 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.

Stock index

CFDs

(margin per contract)

South Africa 40 0.75%
FTSE 100 0.5%
Wall Street 0.5%
Germany 30 0.5%
Hong Kong HS50 1.5%

 

Shares

Share margins

Margin requirements for a CFD position with a non-guaranteed stop is 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).

 

CFD

No stop

Number of shares x share price x margin percentage

E.g. 1000 MTN shares at a price of R198.32:

1000 x 198.32 x 5% = R9,916 margin

Stop

(Margin for equivalent trade with no stop x slippage factor) + value per point* x stop distance

E.g. 1000 MTN shares at price of R198.32, with a non-guaranteed stop 3 pips away:

(R9,916 x 30% + (R10 x 3) = R3,004.80 margin

* Note: 100 SA shares = R1 per pip, 100 UK shares = £1 per pip, 100 US shares = $1 per pip, 100 Euro shares = €1 per pip etc

 

Guaranteed stop

The larger figure of the two calculations below:

  1. Value per point x stop distance (in points) + limited risk premium
  2. Number of shares x share price x margin percentage (%)

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

Calculation 2: 1000 x £1.94 x 5% = £97 margin

So margin requirement is £115.82 (the larger figure of the two).

 

Forex

Forex margins

Margin requirements for a CFD position with a non-guaranteed stop is 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).

 

CFD

No stop

Number of contracts x contract size x price x margin percentage

E.g. 2 contracts GBP/USD:

2 x £100,000 x 1.53470 x 0.25% = $767.35

Stop

(Margin for equivalent trade with no stop x Slippage Factor) + (Number of contracts x value per pip x stop distance)

E.g. 2 contracts GBP/USD with a non-guaranteed stop 20 points away:

($767.35 x 20%) + (2 x $10 x 20) = $553.47 margin

Guaranteed stop

The larger figure of the two calculations below:

  1. Number of contracts x contract size x stop distance + limited risk premium
  2. Number of contracts x contract size x price x margin percentage

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

Calculation 2: 2 x £100,000 x 1.5500 x 0.5% = $1,550 margin

So margin requirement is $1,550 (the larger figure of the two).

 

Stock index margins

Stock index margins

Margin requirements for CFD 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).

 

CFD

No stop

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 %) + (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:

  1. Number of contracts x contract size x stop distance + limited risk premium
  2. Number of contracts x contract size x price x margin percentage 

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
Calculation 2: 1 x £10 x 6600 x 0.5% = £330 margin

So margin requirement is £330 (the larger figure of the two).

 

Commodity margins

Commodity margins

Margin requirements for CFD 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).

 

CFD

No stop

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 %) + (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:

  1. Number of contracts x contract size x stop distance + limited risk premium
  2. Number of contracts x contract size x price x margin percentage 

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
Calculation 2: 1 x $10 x 3350 x 1% = $330 margin

So margin requirement is $940 (the larger figure of the two).

 

What is 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 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.

See our full tiered margin list for CFDs (PDF, 942KB). Please note, preferential rates may be available for tiers three and four. Please see our premium services for more information.

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For limited-risk bets 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.

 

Contact us

24 hours a day from 10am Saturday to Friday night at midnight.

010 344 0053

You can also email helpdesk.za@ig.com