OUR tiered margin system

Our tiered margin system promotes transparency in the way we calculate NTR and also affords both parties greater protection against credit and market risk.

It also means that the NTR calculation will move dynamically dependent on the size of the market. The downside to this is at higher stakes you will be required to deposit more to open your position and if you build your position you may fall in to a higher tier.

For most clients trading in the lower tiers this will represent a decrease in our margins on a majority of our markets when compared to our previous margin rates.

For example AIM stock margins have decreased by up to 50% for those trading in the first tier as we have introduced a blanket bottom tier of 20% on all AIM/non-350 stocks. See our examples below to see how beneficial this change is to a majority of our clients.

 

INDICES EXAMPLE

If the UK100 is trading at 6500-6501, and you stake £1 you will need to cover 0.5% of 6500 (£32.50) times by your stake (£1).

The total margin needed for this position will be £32.50.

If the UK100 is trading at 6500-6501, and you stake £150 you will need to cover ((0.5% of 6500 = £32.50) times by £100) + ((1% of 6500 = £65) times by your stake £50).

The total margin needed for this position will be (32.50 x 100) + (65 x 50) = £6,500.

Spreadex financial spread betting new tiered ntr indices example image final

Equities, AIM EXAMPLE


Below is an example of 88 Energy, an AIM stock trading at 3.13-3.27.

If you stake £1000 on 88 Energy when it is trading at 3.13-3.27 you will need to cover 20% of 3.13p (0.626) times by your stake (£1000). The total margin needed for this position will be £626.

If you stake £40,000 on 88 Energy when it is trading at 3.13-3.27 you will need to cover ((20% of 3.13 = 0.626) times by £30,488) plus ((40% of 3.13 = 1.252) times by £9,512). The total margin needed for this position will be (0.626 x £30,488) + (1.252 x £9,512) = £30,994.51.

Spreadex financial spread betting new tiered ntr equities AIM example image

findING market NTR rates

To find the NTR rates for different markets, login to your account and click the (i) button next to each market name to see all the market information including margin rates.

If you don't have a Spreadex account, go to our Range of Markets page, then select Market Information for the sector you require (e.g. Indices, Shares, Forex, Commodities etc.).

Then click on the link for the specific market listed in the table to see all the market information including the NTR table.

Below shows how to find the NTR rate for EUR/GBP for example.

Step 1 - find the Forex Market Information page via the top nav

 

Step 2 - click on the entry for EUR/GBP to see all the market information for that particular instrument.