What is margin?
CFDs are leveraged products, meaning you don’t have to pay the full value of your exposure to deal. Instead, you only need to put up a fraction of your trade’s total value to open your position. This opening amount is called initial margin – it is also sometimes referred to as deposit margin.
Our margin rates
At IG, we offer tiered margining, applying different margin requirements at different levels of exposure. Smaller deal sizes generally benefit from better market liquidity, so these positions attract our lowest margin rates. Our tiers start at one, with the lowest margin rates, and go up to four, with the highest margin rates.
You can see a summary of tier one margins for some of our most popular markets below. For all tier one margins, you can reduce your margin requirement by using stops. Adding a stop reduces your exposure by limiting your potential losses.
|Stock index||Retail||Leverage equivalent||Professional1||Leverage equivalent|
|US Tech 100||5%||1:20||0.45%||1:222|
1 Margin per contract
|Forex||Retail||Leverage equivalent||Professional1||Leverage equivalent|
|Commodities||Retail||Leverage equivalent||Professional1||Leverage equivalent|
|Spot Silver (5000oz)||10%||1:10||1.80%||1:55|
|High Grade Copper||10%||1:10||1.80%||1:55|
|Oil - US Crude||10%||1:10||1.35%||1:74|
|Oil - Brent Crude||10%||1:10||1.35%||1:74|
1 Margin factor is the variable used to multiply your bet size, to define your margin requirement.
2 Margin per contract
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Margin for professionals
Professional clients are exempt from regulatory limits on leverage that are in place for retail clients. If you qualify as a professional client, you won’t have to commit as much of your capital to the initial margin deposit as a retail client would.
For example, if a retail client wanted to take a position on the FTSE 100, a margin of 5% would be required. A professional client, on the other hand, would only need to put down a margin of 0.45%.
You can find out more, and check if you are eligible for professional status, on our professional trading page.
Maintenance margin, also known as variation margin, is extra money that we might need to request if the market moves against you. It ensures that you have enough money in your account to fund the present value of the position – covering any running losses.
Maintenance margin is charged via a margin call, which is a status applied to your account when it has fallen below the minimum required to keep a position open. We will notify you of this by email.