CFD Margins
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CFD margins
CFD Margins and commissions - How they work
Holding an open CFD position, you may need to make an additional margin payment.
Trading on CFD margins gives CFD traders the ability to diversify their portfolio and open up CFD positions in excess of their capital outlay.
CFD Margins and Margin Calls
There are two kinds of CFD Margins:
Initial Margin
Initial CFD Margins are the amount of money that will be debited from your account at the time the CFD is entered into. The initial margin represents the security deposit value required to be held when you first open a CFD position.
The initial margin is typically 5-20% of the contract value and will represent an assessed risk value that may vary in accordance with the CFD Client Agreement. The initial margin will fluctuate depending on value of your open CFD position and additional margins may be required in certain circumstances set out in the CFD PDS and Client.
Variation Margin
The Variation Marginis the unrealised profit or loss on your open position. This amount is equal to the dollar value movement in your open position when compared against the current market price. Positions are marked to market on a daily basis, with payments being settled daily to account for market movements.
In the event of an adverse price movement, any margin call can be communicated to customers via an e-mail, sms message or phone call for the required deposit of funds into your CFD Trading Account to meet your margin requirement.
For further details on CFD Margins
The entry into CFDs involves the use of margins. There are two types of margin, which you may be required to pay in connection with CFDs. These are initial margin and variation margin.
A deposit (margin) is used as security to open a CFD position. Stock CFD Margins ... Refer to CFD Margin Groups for which margin group a particular stock is currently
CFD is a margin product. In other words, all deals with these contracts are made according to the same pattern as those with currency on the FOREX market