Indices - market information

How to

CALCULATE FUNDING CHARGES FOR A DAILY Indices trade

If you hold a daily trade overnight your bet will be kept open for the following day's trading and a funding charge will be levied on your account. The funding charge could be a debit or a credit depending on if your position is short or long.

Funding is charged to reflect the cost of financing a position that you hold having only put down a fraction of the value as a deposit.

The funding charge is based on the Adjusted ARR + a Spreadex Charge per annum. For all stock market indices the Spreadex charge is 3.5%. Therefore if the Adjusted ARR was 4%, the total daily funding charge to a long position would be (4% + 3.5%) / 365 = 0.0205% of the total position value. The total position value can be calculated by mutliplying your stake with the price of the market.

For Example: You hold a long (buy) position in UK 100 of £1 and at the roll time the price is 9200, your funding charge for the night would be (1x9200) x 0.0205% = £1.89.

If you are short, the 3.5% charge is subtracted from the Adjusted ARR rate. Unlike long positions, the total funding adjustment on short positions can result in either a positive or negative funding adjustment, so your account can be credited or debited funding. If the Adjusted ARR is greater than the 3.5% charge, the funding adjustment will be positive and credited to your account. If the Adjusted ARR is less than the 3.5% charge, the funding adjustment will be negative and debited from your account.

For Example: If the Adjusted ARR was 1.5% and you hold a short position in UK 100 of £1 and at the roll time the price is 9200, your funding charge for the night would be (1 x 9200) x((1.5% - 3.5%) / 365) = £0.50

For Example: if the Adjusted ARR was 5% and you hold a short position in in UK 100 of £1 and at the roll time the price is 9200, you would be credited funding for the night of (1 x 9200) x ((5% - 3.5%) / 365) = £0.38

The funding is trebled on a Friday to account for holding a trade over the weekend, and bank holidays will be similarly charged.

HOW TO

ROLL AN INDICES TRADE

All daily/spot/rolling indices trades will automatically remain open indefinitely. Futures trades will close at the expiry date of the contract. You can specify whether you would like to roll any indices futures trades to roll into the next contract by visiting the Rolling Trades page within My Account once you have logged in. Click the following link to find out information on setting your Trading Preferences. You can find the expiry date of each futures contract on the information button on our platform.

When you first open the account, as a default setting, all preferences are set for trades not to roll. If you wish for your trades to roll past their respective expiry dates it is essential that you have updated these preferences.

If you would like to roll all Indices trades, please ensure that the ‘Stock Indices’ box is ticked, as shown in the above example

Any stops or limits you have attached to your trade will be rolled over also, they will be adjusted to reflect the price of the new contract you have been rolled into.

HOW TO work out the

NTR/MARGIN REQUIRED FOR AN INDICES TRADE

The Notional Trading Requirement (NTR, Initial Margin or Margin) is the amount of money we require for you to open a trade in a specified product. The NTR will normally be displayed as a percentage and can be found in the indices market information pages.

For example, placing a £10 trade on the UK 100 Daily at 7200 would require £3600 of NTR, as the NTR rate is 5% (£10 x 7200 x 5%).

The majority of markets will have a larger NTR rate for larger stake sizes. This is to reflect the increased risk of larger positions, we require a greater deposit the bigger the position size. The NTR tiers can be found on the information button alongside each market on our platform. The NTR tiers don't act as a cliff edge, they act as a step system where the NTR margin rate for each tier is applied against your position.

For example, if the UK 100 daily has tiered margin catergories of 5% up to a stake of £500 and 15% above £500 and your stake was £505, only £5 of your position would be margined at 15%.

If you have a ‘Force Open’ position or an opposing trade in both the futures and daily you will only be charged NTR on the trade with the larger stake. 

HOW TO

find the FTSE or Dow markets

Due to licensing restrictions we are unable to display markets like the FTSE and the Dow by that name.

Instead the FTSE market is quoted as either the UK 100 Daily, Mar, Jun, Sep or Dec and the Dow as either the Wall Street Daily, Mar, Jun, Sep or Dec.

This is true with most market indices where we name them after the country rather than their exchange name.

Find out more on

the dow jones industrial average

The Dow Jones Industrial Average is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard session in the stock market. Also, known as the Industrial Average, the Dow Jones, the Dow 30 or the Dow, the index is one of several created by Dow Jones & Company founder Charles Dow and is now owned by the CME Group.

The index includes companies such as Bank of America, Coca-Cola, Microsoft and Wal-Mart. 

find out more on

The Cotation Assistée en Continu (the CAC)

The Cotation Assistée en Continu or CAC is an index measuring the value of the 40 most significant French companies on the Paris Bourse. It includes companies such as AXA, Michelin and Société Générale. 

find out more on

the nasdaq

The NASDAQ is an American stock exchange based in New York and contains 100 of the biggest non-financial companies – usually technology-based firms – including both domestic and international securities.

It was formed in 1971 and NASDAQ originally stood for National Association of Securities Dealers Automated Quotation Systems.

find out more on

the swiss index

The Swiss Market Index is an index made up of 20 of the largest and most liquid of Switzerland’s stocks.

The securities within the Swiss Market Index represent over 90% of the market capitalisation and 90% of the trading volume of the equities listed on the SIX Swiss Exchange. It includes well known companies such as Swiss Re, Nestlé, Zurich and Credit Suisse.