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term margin in spread betting

  • 23-11-2014 10:24PM
    #1
    aidanki
    Registered Users, Registered Users 2 Posts: 1,287 ✭✭✭


    I opened a demo spreadbet account with IG spreads a while back as I intend to get into this in the future

    so I placed a bet on berkshire hataway for the fun of it and to familiarize myself with the trading platform

    only thing I can't understand is margin, what is that and how is it calculated ? see picture attached


Comments

  • #2
    arrowloopboy
    Registered Users, Registered Users 2 Posts: 1,154 ✭✭✭arrowloopboy


    aidanki wrote: »
    I opened a demo spreadbet account with IG spreads a while back as I intend to get into this in the future

    so I placed a bet on berkshire hataway for the fun of it and to familiarize myself with the trading platform

    only thing I can't understand is margin, what is that and how is it calculated ? see picture attached

    Aidan , the margin is the amount of money of your account that has to be set aside as a kind of guarantee if your position is taken out by a stop loss . It varies, Berkshire would probably require a 10% margin , on a guaranteed s/l , an expiration stock migh require a 30% margin ,. Tell me what you did , and what kind of s/ l you applied if any and I can tell you more .


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