Spread Betting Margins
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Spread Betting Margins

Spread Betting Margins

Trading Features from Denham of Capital Spreads.

As you’ve no doubt seen and read in the press the global increases in margin requirements will probably mean that revenues for many brokers will be cut back as clients deal sizes are reduced.

For the longer term that might harm the wider market as speculators will be less able to ‘gear up’ into significant holdings.

Naturally that’s also meant that there have been comments in the press about spread betting and CFD operators increasing margins due to credit issues and increased market volatility.

So what have we done about it?

We’ve been in touch with a number of spread betting companies to see what affect the current credit crunch is having.

So far it looks like business as usual with little change and the operators keen to keep on good terms with spread betting clients who are (hopefully) enjoying the current market volatility and the risks / rewards that spread trading can offer:
  1. Capital Spreads – no change on 2007 margin requirements, “we have kept our [margins] at the same very low levels throughout the last year”. Read more about Capital Spreads.

  2. Financial Spreads – no change on 2007 margin requirements. Read more about Financial Spreads.

  3. GFT - no change on 2007 margin requirements “As a company with access to a significant amount of liquidity, we will continue cover our customers’ positions,” said a GFT spokesperson. “We are a company built on principles of trust and integrity, and will continue to provide our customers with the same level of consistency and reliability they expect” Read more about GFT.

  4. IG Index – “[we have] reviewed margin requirements and the initial margin deposit rate for the vast majority of banking stocks has only been increased from 5% to 10%. Five of the more volatile banking stocks have had the margin requirement increased to 25%. Margin rates on other stocks remain unchanged. Read more about IG Index.

  5. Paddy Power Trader – no change on 2007 margin requirements. Read more about Paddy Power Trader.

  6. Spreadex – “no change on our 2007 margin requirements and our Notional Trading Requirements remain at some of the lowest around. On all UK 350 shares, customers require just a 3% deposit and on all other UK shares just a 20% deposit, subject to client status and stock restrictions”. Read more about Spreadex.


Under no circumstances are the comments and the information provided herein to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice and neither Clean Financial nor any contributing company or author accepts any responsibility for any use that may be made of them. The information provided is believed to be accurate at the date the information is produced.


Risk Warning: Financial Spread Trading and CFDs carry a high level of risk to your capital. You may lose more than your initial investment. They may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

'Spread Betting Margins' edited by DB, updated 16-Apr-08



Also see:

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Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.


* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.

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