Calculating spread betting margins

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

The margin you will be required to deposit reflects a percentage of the full value of the position you wish to open. We refer to this 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 certain instruments, different margin rates may apply depending on the size of your position or the tier of your position (or a portion of your position) in that instrument. ​The portion of the position that falls within each tier is subject to the margin rate applicable to 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

Tier Position size (stake) Margin rate
1 0-10 10%
2 >10-30 15%
3 >30-50 20%
4 >50-100 30%
5 >100 50%
CMC Markets

Based on the margin rates in the table below for Company ABC (GBP), if a position of £65 per point used the level 1 mid-price of 275.0, the margin would be £3437.50.

​Your position margin requirement is calculated as follows: ​12.5 x 275.0 x 1 = £3437.50.

Tier Position size Margin rate  
1 10 10% 10 x 275 x 10% = £275
2 20 15% 20 x 275 x 15%  = £825
3 20 20% 20 x 275 x 20% = £1100
4 15 30% 15 x 275 x 30% = £1237.50
5  0 50%  0
Total 65   Total = £3437.50

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

​​Spread betting using margin allows you to open a position by only 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 deposit. Profits and losses are relative to the full value of your position. Spread betting 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 spread bets.

Live account

Access our full range of markets, trading tools and features.

Open a live account

Losses can exceed your deposits

Demo account

Try spread betting with virtual funds in a risk-free environment.

Open a demo account

Demo account

Try spread betting with virtual funds in a risk-free environment.

Live account

Access our full range of products, trading tools and features.

Open a live account

Losses can exceed your deposits

Land Rover BAR

As official partner of Land Rover BAR we’re backing Sir Ben Ainslie’s team to bring the America’s Cup home.

Find out more

NSW Waratahs

We’re proud to support Super XV Rugby giants the NSW Waratahs, one of Australia’s most iconic teams.

Find out more

TOP

This website uses cookies. By continuing to use this website you agree to this. Find out more

Close
Spread betting and CFD trading can result in losses that exceed your deposits. Ensure you understand the risks.