Ig index forex leverage

Ig index forex leverage

Posted: InnaM On: 04.06.2017

MetaTrader 4 Forex Brokers, MetaTrader 4 Brokers, MT4 Brokers

Simple, but expensive and somewhat inconvenient. This is dealing with leverage.

This is calculated as: Spread betting with leverage can be risky. Even though you only put up a fraction of the actual cost of a deal, you are still exposed to its full value. This means there is the potential to lose significantly more than your initial deposit. Spread betting on margin is another way of saying spread betting with leverage.

There are two types of margin to consider:.

The initial margin is sometimes called the deposit margin, or just the deposit. As a general rule, the more volatile the market, the higher the initial margin required. You also need to ensure that the equity in your account the total money you have deposited, plus or minus any running profits or losses is above the amount required for margin. If the market moves against you — or our margin requirements increase — you may be required to provide additional funds so that you have enough equity in your account to fund the present value of your positions, including any running losses.

This is known as maintenance margin, or variation margin. If your equity level drops beneath the amount required for margin, then you may find that we close positions on your behalf, in order to reduce your margin requirement and prevent your account from going into a negative.

If so, you will need to restore the amount in your account to keep the position open. The slippage factor is a percentage, which varies depending on the market. When spread betting on shares or forex with IG, your margin is calculated as a percentage of the total value of your position. Each market has its own set percentage.

Tier 1 forex rates those for the smallest positions can be as low as 0.

Each market has its own 'margin factor', which is multiplied by the size of your bet to find the margin required. We calculate our margin factors by looking at the volatility of the particular market and the amount demanded for equivalent contracts in the underlying market.

ig index forex leverage

Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure.

CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. IG is a trading name of IG Markets Ltd a company registered in England and Wales under number and IG Index Ltd a company registered in England and Wales under number Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA.

Both IG Markets Ltd Register number and IG Index Ltd Register number are authorised and regulated by the Financial Conduct Authority. Excludes binary bets, where IG Index Ltd is licensed and regulated by the Gambling Commission, reference number IG Index supports responsible gambling, for information and advice please visit www.

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IG services Spread betting. What is spread betting? How spread betting works Spread betting: Spread betting risks and charges How to spread bet with IG Is spread betting for me? CFDs vs spread betting. All trading involves risk. Losses can exceed deposits.

Risks of spread betting with leverage Spread betting with leverage can be risky. There are two types of margin to consider: Initial margin — the minimum amount you need to put up to open a position Maintenance margin — any additional funds required to keep a position open Initial Margin The initial margin is sometimes called the deposit margin, or just the deposit.

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Maintenance margin You also need to ensure that the equity in your account the total money you have deposited, plus or minus any running profits or losses is above the amount required for margin.

Margin requirements Different spread bets will require different levels of margin, usually dependent on: The market you are dealing in The size of your position Whether you have any stops in place Guaranteed stop margin requirements The margin required for bets with a guaranteed stop in place is equal to your risk.

Non-guaranteed stop margin requirements Bets with non-guaranteed stops are subject to slippage, which adds to the margin requirement. Calculating margin Shares, forex and indices When spread betting on shares or forex with IG, your margin is calculated as a percentage of the total value of your position.

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ig index forex leverage

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