78% of clients lose money on CFDs

Calculating CFD margins 

In order to open a CFD position on your account, you will need to deposit an amount of money known as margin. 

The margin reflects a percentage of the full value of the position, and is referred to as 'position margin' on our platform. The position margin will be calculated using the applicable margin rates, as shown in the product library area on the platform.

For shares, different margin rates may apply depending on the size of your position, or the tier your position (or a portion of your position) in that instrument falls within. The portion of the position that falls within each tier is subject to the margin rate applicable for that tier.

In order to calculate the position margin, the level 1 mid-price (shown on the platform) is used.

Position margin example

Company ABC (GBP) margin rates

TierPosition size (units)Margin rate
CMC Markets

Based on the margin rates shown in the table for company ABC (GBP), a position of 6,500 units, using the level 1 mid-price of 275.0 (£2.75), would require a position margin would be £3,437.50.

Your position margin requirement is calculated as follows:

TierPosition sizeMargin rateCalculation
11,00010%1,000 x 2.75 x 10% = £275
22,00015%2,000 x 2.75 x 15% = £825
32,00020%2,000 x 2.75 x 20% = £1100
41,50030%1,500 x 2.75 x 30% = £1237.50
5 050% 0
Total6,500 Total = £3,437.50

The notional value of your total position is £17,875.00.

​​As you can see, trading using margin allows you to open a position by depositing a percentage of the full value of the position. This means that your losses will be amplified and you could lose more than your initial deposit. Profits and losses are relative to the full value of your position. 

Trading using margin is not necessarily for everyone and you should ensure you understand the risks involved and if necessary seek independent professional advice before placing any trades.

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.