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 and spread bets 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.

See our guide to dealing

Find out more about the different types of margin in our guide to dealing.

Contact us

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You can also email helpdesk.za@ig.com

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.