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CFD TRADING GURU

This CFD Trading  Guru blog is all about Trading CFDs, from CFD Providers offering the trading pit to punters game enough to have a go.

News

Gain Capital Buys City Index

About time someone did something with City Index

GAIN Capital announced that we have agreed to acquire City Index Ltd.  
Sunday, November 2, 2014/Author: CFD Guru/Number of views (1094)/Comments (0)/ Article rating: No rating
Categories: CFD Industry News
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IG Markets

Calculating Margins - Gotta Luv this one!


 IG Share margins

From the IG site - Margin requirements for CFD positions with non-guaranteed stops are capped at the amount of margin for no stop (ie if the stop is wide then the calculations used may give a higher margin requirement than the calculation for no stop. If this happens then we limit the margin to the amount required for the same position with no stop).

 

 

No stop

Number of shares x share price x margin percentage

E.g. 1000 Vodafone shares at a price of £1.94:

1000 x 1.94 x 5% = £97 margin

Stop

(Margin for equivalent trade with no stop x slippage factor) + value per point* x stop distance

E.g. 1000 Vodafone shares at price of £1.94, with a non-guaranteed stop 3 points away:

(£97 x 30% + (£10 x 3) = £59.10 margin

* Note: 100 UK shares = £1 per point, 100 US shares = $1 per point, 100 Euro shares = €1 per point etc

 

Guaranteed stop

Value per point x stop distance:

E.g. 1000 Vodafone shares at a price of 194, with a guaranteed stop 11 points away:

£10 x 11 = £110 margin

Monday, September 8, 2014/Author: CFD Guru/Number of views (0)/Comments (0)/ Article rating: No rating
Categories: CFD Trading Tips
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IG Markets

IG Markets Direct Market Access DMA vs Market Maker MM

 

QUESTION
I note in the past that you have recommended using DMA orders instead of OTC. I use IG Markets as my broker. With DMA orders it is not possible to place a guaranteed stop on price. Do you recommend I purchase DMA orders with normal stops or what kind of protection do you recommend…read more

 
   

Tuesday, May 13, 2014/Author: CFD Guru/Number of views (1301)/Comments (0)/ Article rating: No rating
Categories: CFD Trading Tips

GFT Markets

GFT Swings Financing Libor Sword At Humble CFD Trader

   GFT Markets Now Charges Financing On Short CFD Trades
As LIBOR currently sits at a value lower than 250 basis points, GFT is not charging its customers if they are holding a short position.  However, effective Monday 9th June, GFT will be applying a charge of LIBOR minus 250 basis points to customers, which in the current circumstances will result in a charge for financing being applied to customers instead of being credited with financing.  If LIBOR is above 250 basis points, customers will continue to receive financing on short positions per the Market Information Sheets.
Example...
   
Thursday, May 8, 2014/Author: CFD Guru/Number of views (1214)/Comments (0)/ Article rating: No rating
Categories: CFD Industry News

CFD Index Trading

Overnight Financing Charges

 

Financing Chargers - CFD Provider clipping your ticket when you sleep…

 
   
Wednesday, April 30, 2014/Author: CFD Guru/Number of views (1275)/Comments (0)/ Article rating: No rating
Categories: CFD Trading Tips
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