Spread Betting FAQ

If you can’t find your question here, or you require any other information, please contact our Customer Support team at support@investorsintelligencespreadbetting.com or +44 (0)20 7456 7589.

  • Your account application

o    How do I apply for an account?

Please complete our online application form, reached via the ‘Apply for an account’ button. This should take no more than 10 minutes. You will be asked to select your preferred base currency: this is the currency in which your account will be denominated and in which you will deposit and withdraw funds.

Accounts are subject to status. We will conduct an electronic check to confirm your identity and address. If we are unable to do this, we will require documentation in order to activate your account.

You should hear from us (usually by email) within 30 minutes of submitting the application form (for applications made between 08:00 and 19:00 UK time, Monday to Friday). If we need any additional information from you we will explain the details we require.

o    What type of account can I have?

Investors Intelligence Spread Betting offers deposit (or ‘pay as you go’) accounts, which means that you must have funds on your account to cover any trading position you open. You only need to deposit funds into your account when you are ready to trade.

You can choose whether to apply for a spread betting account or an account for both spread betting and CFD trading.

If are interested in holding a corporate account, please contact our Customer Support team at support@investorsintelligencespreadbetting.com or +44 (0)20 7456 7589.F

o    What are the differences between spread betting and CFD trading?

Spread betting and CFD trading both give you a flexible way to go long or short of financial markets to profit from rising or falling prices. There are, however, some key differences between the products:

Spread betting CFD trading
Profits are free from Capital Gains Tax* Profits subject to Capital Gains Tax*
Losses cannot be offset against tax* Losses can be offset against tax*
Trade all markets in your chosen account currency Trade in the currency of the underlying market (e.g. Wall St in USD, UK 100 in GBP)
Bet your stake per point movement in the underlying market Trade a number of CFDs equivalent to trading the underlying market
Charges are in the dealing spread Charges are in the dealing spread

*UK taxpayers only. Tax treatment depends on the individual circumstances of each client and may change in the future.

o    What is the cost of opening an account?

You don’t have to pay anything to open an account with Investors Intelligence Spread Betting. There are no fees to use our dealing platform: all our charges are contained in the dealing spread when you trade (i.e. the difference between the buying price and the selling price).

Before you open a position you will need to deposit funds on your account to act as margin. See Funding your account below.

o    Can I choose my account currency?

Yes, we offer a range of account currency options including sterling, US dollars and euros. Select your preferred base currency when you open your account. You will now deposit and withdraw funds in this currency, and your running account valuation will be calculated in this currency. All your spread betting positions will be made in your chosen currency.

CFD positions will be made in the currency of the underlying market. For example, positions on UK shares will be made in sterling, while positions on US shares will be made in US dollars. When you close a CFD position your realised profit or loss will be immediately converted into your base currency (if necessary).

o    Can somebody else trade on my account?

Yes, you can nominate a family member or friend by completing a Power of Attorney form. Click to download the Power of Attorney form.

o    What is a Limited Risk Account?

A Limited Risk Account is designed to minimise the risks of trading. For every trade you open with a Limited Risk Account you must specify a Guaranteed Stop to cover the maximum possible loss on that trade. This means that, should the market move against you, we will guarantee to close your position at an exact pre-specified point. This way you cannot lose more than you have initially invested.

Depending on your level of experience and financial situation you may be steered towards this account when you apply. Once you have gained some experience you are welcome to contact Customer Support and request to swap your account to a standard account. With a standard account you still have the option to use Guaranteed Stops if you wish but they are not mandatory.

As Guaranteed Stops are essentially a form of insurance against market gaps, they come at a small cost per trade. For more information, see Guaranteed Stops below.

  • Funding your account

o    How much do I need to deposit?

You don’t need to deposit any funds into your account until you wish to trade. To calculate the minimum deposit required to open a trade, you multiply the minimum Initial Margin (IM) figure for the market concerned by your unit stake. For example, if you want to buy UK 100 (minimum IM = 30) for £1/point, you would need £30 in available funds to open a new position.

You can find the minimum IM for each market in our Market Information tables. For more information on margin calculations please refer to our online User Manual, or see Making a trade below.

o    How can I deposit funds?

You can credit your account by debit or credit card, by bank transfer or by cheque. Please note that, due to money laundering regulations enforced by the Financial Conduct Authority, we are unable to accept deposits from any other source than the account holder’s own funds.

 

Deposit funds by debit/credit card

You can deposit funds securely online or by telephone using a debit or credit card. There is a 2% charge for payments made by credit card.

Click on My Account at the top of the trading platform, then select Manage Cards from the drop-down menu. When the My Account panel launches, select Add New Payment Method at the bottom-right to register your card details.

Once you’ve registered a card, select Make Card Deposit to deposit funds using any of your saved cards. If you need any assistance, or you’d prefer to make your card deposit over the phone, please call the Customer Support team on +44 (0)20 7456 7589.

We accept all major debit and credit cards. We do not accept American Express and some international Visa Electron cards. Once you’ve registered a card you will not need to re-register it unless it is inactive for over 12 months.

As a credit card customer you should be aware that some credit card companies charge for online trading transactions by treating them as cash advances. Cash advances are usually subject to a higher rate of interest than standard transactions, so you should check the terms and conditions of your card carefully.

Please note that we are currently unable to return funds to MasterCard. If you deposit funds via a MasterCard we will make refunds to a bank account in your name. We may require proof of your bank account details to establish that the account is in your name. This should be in the form of an original bank statement dated within the last three months. The statement should include your name, account number and, for international clients, an IBAN or SWIFT code. We may also need sight of the card in question via faxed or scanned documentation.

Note: If you enter your card details for the first time but do not make a payment, a pre-authorisation service will temporarily take 0.01p from your bank account. This helps us to authorise the card, ready for when you do want to make a payment. The nominal amount will only appear on your bank account for a short time before dropping off, and will never actually be removed from your bank.

 

Deposit funds by bank transfer

You can deposit funds directly into our bank account by making a bank transfer from a bank account in your name. Please ensure you use your full name and Investors Intelligence Spread Betting account number as a reference. Due to money laundering regulations, we cannot accept cash deposited into our bank account. Any funds credited in this way will not be added to your account and could result in significant delays on any refund.

Some international transfers will incur a fee charged by your bank or ours. Any charges will come out of the amount that you transfer and therefore we will only credit your trading account with the funds that we receive. We cannot be held accountable for any bank charges.

Our bank accounts are held at Barclays Bank, 1 Churchill Place, London, E14 5HP. For all deposit currencies the account details are:

Account Name: London Capital Group T/as Investors Intelligence Spread Betting
Swift Code: BARCGB22
Sort Code: 20-77-67

Please check the grid below for the relevant account number and IBAN, according to your deposit currency.

Deposit currency Account number IBAN
Sterling 70721778 GB40 BARC 2077 6770 7217 78
Euro 69703833 GB90 BARC 2077 6769 7038 33
US dollar 75872800 GB76 BARC 2077 6775 8728 00
Norwegian krone 56768744 GB60 BARC 2077 6756 7687 44
Swedish krona 53132388 GB18 BARC 2077 6753 1323 88
Danish krone 47496022 GB55 BARC 2077 6747 4960 22
Hong Kong dollar 53132299 GB93 BARC 2077 6753 1322 99
Australian dollar 56768633 GB50 BARC 2077 6756 7686 33
South African rand 62405000 GB83 BARC 2077 6762 4050 00

 

Deposit funds by cheque

Please make your cheque payable to London Capital Group and send it to Investors Intelligence Spread Betting, 2nd floor, 6 Devonshire Square, London, EC2M 4AB. We will not credit your account until your cheque has cleared. This usually takes five working days.

Unfortunately we cannot accept banker’s drafts. If you are going to deposit funds using a building society cheque which does not have your name on it, we will need to see a receipt stamped by the building society to say that the cheque corresponds to funds from an account in your name.

Cheques drawn on a bank outside of the UK can take up to 4-6 weeks to clear. Any commission charged by our bank, or yours, for processing an international cheque will come directly out of the funds from the cheque deposited and therefore only the funds credited to our bank account will be credited to your trading account.

o    Are my funds deposited online securely?

To improve the security of the card payments you make into your trading account, and following industry standards, we operate Verified by Visa & MasterCard SecureCode for some card types. These schemes, known collectively as 3-D Secure, are designed to improve the way that your card payments are authenticated and to reduce the likelihood of card fraud.

If you have previously enrolled for these services with your bank and we require your card type to use 3-D Secure, you will simply be prompted for your 3-D Secure password when you next make a payment into your trading account, via a secure link hosted by your card issuer. Your card issuer will confirm your identity and allow your transaction to continue.

If you have not yet enrolled in Verified by Visa or MasterCard SecureCode you may be prompted by your bank to enrol before a payment can be made. This will be done quickly and securely on your bank’s website before seamlessly bringing you back to the payment page to continue with your transaction.

Please be assured that when inputting your 3-D Secure details you are communicating directly with your bank via a secure link. The information that you enter is not disclosed to London Capital Group.

o    How do I arrange a refund?

If you would like a refund from your Investors Intelligence Spread Betting account, simply click My Account on the trading platform and select Request Withdrawal. Alternatively, please call or email Customer Support advising us of the amount you wish to receive and confirming the last four digits of the card you would like us to refund.

Our company policy states that any funds deposited must go back to the original source. For example, if you deposited funds using a card we would transfer your funds back to this card. While we will action refunds as quickly as possible and normally the same business day, once the funds leave your Investors Intelligence Spread Betting account the banking system usually takes up to 3-5 working days to return the funds to your bank account. In some rare cases the banking system may take longer to process your refund; if this is the case please contact Customer Support.

Please note that we are currently unable to return funds to MasterCard. If you deposit funds via a MasterCard we will make refunds to a bank account in your name. We may require proof of your bank account details to establish that the account is in your name. This should be in the form of an original bank statement dated within the last three months. The statement should include your name, account number and, for international clients, an IBAN or SWIFT code. We may also need sight of the card in question via faxed or scanned documentation.

For UK customers who have deposited funds via a MasterCard or a bank transfer, we will refund your money to your bank account via BACS and this will take three working days, with no charge. For international customers who have deposited funds via a MasterCard or an international transfer, there is a charge of £20 or the equivalent currency amount for refunds under £1000.00.

Please note that due to transaction costs, we reserve the right to refuse any refund under £50.00 (or the equivalent currency amount) unless you are closing your account. Please bear this in mind when requesting a refund.

  • Making a trade

o    How do I place a trade?

Investors Intelligence Spread Betting provides a wide range of markets to buy and sell from 23:00 on Sunday until 21:15 on Friday (UK time). You can make your trades online or by telephone.

To make a trade online, first you must log into our online dealing platform using your unique username and password. Double-click on the name of the market you wish to trade to open a trade ticket, then select the desired size of your trade and click Buy or Sell on the trade ticket when you are ready to trade.

You will receive confirmation of your trade on-screen and via email, and your new position will appear under Open Positions in the bottom window. For further guidance on using the Investors Intelligence Spread Betting online trading platform, please use our online User Manual.

If you wish to trade by telephone, our dealing line is +44 (0)20 7456 7590 (open 24 hours a day during the trading week). Any trades you make over the phone will also be reflected on the online platform, so you could open a trade on the phone and close it on the online platform, for instance.

If you have any problems or questions, you can call our Customer Support team on +44 (0)20 7456 7589 (08:00 to 19:00 (UK time) Monday to Friday). Please refer to our Market Information tables for specific trading hours of individual products.

o    Am I trading on the prices I see online?

Yes, your new position will be opened at the exact price you see online when you click Buy or Sell. We do not operate ‘requotes’: your position will never be opened at a price less favourable to you than the price you see when you place your trade.

Your trade will be processed immediately and you will receive confirmation of your opening price on-screen and by email. The new position will also appear under Open Positions in the bottom window. If for any reason we cannot open your position at your desired price you will receive a message informing you that the trade has been declined. This message will also state the reason why the trade has been declined.

o    What hours can I trade?

We are open for trading from Sunday 23:00 until Friday 21:15 (UK time), 24 hours a day online or by phone. Customer Support hours are 08:00 to 19:00 (UK time). Individual markets also have their own trading hours which you can see in our Market Information tables or by clicking the ‘i’ button next to any market name on the online platform.

Note that we offer 24-hour trading on many of our markets, in particular UK 100, Wall Street, Japan 225 and other indices, so you can trade these markets even when the underlying exchanges are closed. We also offer currency trading 24 hours a day. You should bear in mind that you could have orders filled on these markets at any time we are quoting them.

o    What markets do you offer?

We offer trading on a wide range of indices, shares, currencies, commodities, interest rates and bonds. You can find full details of the products we offer in our Market Information tables.

o    Can I trade while I’m abroad?

Yes, as the Investors Intelligence Spread Betting trading software is web-based you can trade from anywhere in the world. However, remember that when you opened your account you confirmed that you would not place any trades from the USA. When trading from other jurisdictions, please note that local laws may apply.

From any system worldwide that has access to the internet, simply use your username and password to log into the dealing platform and start trading.

o    Can I trade on my mobile?

Yes, we have dedicated trading apps for iPhone and Android smartphones. Just go to the App Store or Google Play and search for ‘Investors Intelligence Spread Betting’, then download the free trading app and login using your normal username and password.

You can open and close positions, place and edit orders and manage your trading account via the app. Any trades you make on the mobile app will also be reflected on the standard dealing platform, and vice versa. Click to find out more about mobile dealing.

o    How much margin do I need to make my trade?

The minimum amount you need as margin to open a new position is determined by the minimum Initial Margin (IM) figure for the market you wish to trade. You multiply the minimum IM by your unit stake to calculate your minimum margin requirement.

For example, the minimum margin required to open a £1/point position on UK 100 Rolling Daily (minimum IM = 30) is 30 x £1, or £30. You would need at least £30 on your account to open this position.

Remember that a stop-loss order is automatically placed on each new position you open, at a level to cover losses equal to 80% of your margin requirement. In this case your stop level would be placed 24 points away from your opening level, as 80% of £30 is £24, which equals 24 points at £1/point.

We also quote a maximum IM figure for each market. This determines the maximum margin requirement we will take, if you do not specify a stop distance when you open your position. For example, the maximum automatic margin for a £1/point position on UK 100 Rolling Daily (maximum IM = 150) is 150 x £1, or £150. In this case your stop will be placed 120 points away from your opening level, as 80% of £150 is £120, which equals 120 points at £1/point.

If you have sufficient funds on your account to cover the maximum margin requirement (and you do not specify a stop distance when you open your position), we will take the maximum requirement and set your stop accordingly. Otherwise the available funds on your account will be used as margin and your stop will be calculated to cover 80% of these funds.

For example, if you wish to trade UK 100 Rolling Daily for £1/point but you only have £100 on your account, this full amount will be used as margin and your stop will be set 80 points from your opening level, as 80% of £100 is £80, which equals 80 points at £1/point.

Note that, if you do not want your margin requirement to be set automatically, you simply set your own stop level when you open your position. You can also adjust your stop level on an open position to control your margin, subject to the minimum margin requirement described above.

There is another system for calculating margin, known as equity-based close-out, available to some clients. Under this system, we take the minimum margin requirement (derived from the minimum IM) for all positions, regardless of your stop distance. If your Account Valuation then falls below a given percentage of your Margin in Use, the system will automatically close your open positions to protect you from greater losses.

For more information see What is equity-based close-out? below, or call our dealing desk on +44 (0)20 7456 7590.

o    How is margin calculated on shares?

The IM on shares is calculated as a percentage of the full position value. For example, the minimum IM for the leading UK shares is 3% and the maximum IM is 10%. The minimum margin required to open a new position is therefore: your opening price x your unit stake x 3%.

For example, if you wish to buy a UK share for £1/point at a price of 529.0, the minimum margin required is 529.0 x £1 x 3% = £15.87. As with all other markets, your stop level is set to cover 80% of your margin requirement. In this case your stop level would be set 13 points from your opening level, as 80% of £15.87 is £12.70, which equals 13 points at £1/point (rounded up).

o    How does my stop level affect my margin requirement?

As your mandatory stop-loss order is a form of risk protection, helping to limit your potential loss on a position, your stop level controls the margin required to open and run your position.

You can set your stop level when you open your position, specifying either the absolute level or the number of points you want to place your stop away from the opening level.

You can also adjust the stop level on any of your open positions: simply find the position under Open Positions in the bottom window and click the Amend button, then enter your new stop level and click Submit. When you alter your stop level your margin requirement will automatically be recalculated, and you can see this reflected in your Margin in Use total.

If you move your stop level closer to your opening level you can reduce your margin requirement, freeing up your capital for other trading positions, but this is always subject to the minimum margin requirement (calculated from the minimum IM).

The basic formula for calculating your margin requirement is that your stop level will always represent a loss equal to 80% of your margin requirement, unless this would breach the minimum or maximum automatic margin requirements (as determined by the minimum and maximum IM).

So for example, if you open a £1/point position on UK 100 Rolling Daily with a stop 80 points from your opening level, your margin requirement will be £100, as your stop represents a loss of £80, which is 80% of £100. If you then adjust your stop to 40 points from your opening level, your margin requirement will reduce to £50, as your new stop represents a loss of £40, which is 80% of £50.

You can move your stop further away than the automatic maximum level if you wish, provided you have sufficient funds on your account. In this case the extra margin (in excess of the maximum automatic margin) is calculated on a simple formula of stop distance x unit stake, to produce a combined figure.

For example, although the maximum IM for UK 100 Rolling Daily is 150, you could place your stop 250 points away from your opening level. In this case your margin requirement for a £1/point position will be £280 (£150 for the first 120 points plus £130 for the next 130 points).

Note that, if you make your stop a Guaranteed Stop, so that your potential loss is absolutely limited, your margin requirement will be the total capital you have at risk. For example, if you trade UK 100 Rolling Daily for £1/point with a Guaranteed Stop 100 points from your opening level, your margin requirement will be £100, as this is the guaranteed maximum you can lose on your position. (See How do I use a Guaranteed Stop? below.)

o    How do I use a Guaranteed Stop?

With Investors Intelligence Spread Betting you can choose absolute risk protection by making your mandatory stop-loss order a Guaranteed Stop. This special kind of stop order lets you trade safe in the knowledge that, should a market gap through your stop level, you will be stopped out at exactly the level you requested, and you will not be subject to any slippage.

To use this guaranteed risk protection you simply select Guaranteed Stop on the trade ticket when you open your position. There is a premium for using a Guaranteed Stop, which is charged when you open your position. This is calculated as a multiple of your trade size. For example, the Guaranteed Stop charge for UK 100 Rolling Daily is 2, so if you attach a Guaranteed Stop to a £1/point position you would be charged £2.

This one-off premium is charged when you open your position or when you attach a Guaranteed Stop to an open position. You can also attach a Guaranteed Stop to a new order, in which case the Guaranteed Stop will only come into effect and your premium only be charged if and when your new order is filled.

There is also a minimum distance at which you can place your Guaranteed Stop, which is generally larger than the minimum distance for a regular stop. This may mean that the minimum margin requirement to open a position with a Guaranteed Stop is effectively larger, for example if the minimum IM is 20 but the minimum Guaranteed Stop distance is 30.

Please note that, if you close your position before your Guaranteed Stop has been triggered, your premium will not be re-credited. Also, you cannot attach or amend a Guaranteed Stop when the market is closed. For full details of the Guaranteed Stop charges and minimum distances for all our markets please see our Market Information tables.

o    How do I use a Trailing Stop?

A Trailing Stop is a risk management tool that allows you to manage your risk without restricting your potential profit. Your stop level will automatically adjust as the market moves in your favour, helping you to secure your gains on profitable positions. There is no charge for using a Trailing Stop.

To make your mandatory stop-loss order a Trailing Stop, simply select Set Trailing Stop on the trade ticket when you open your position. You will also need to enter your Trailing Step distance: now every time the price moves this distance in your favour your stop level will be adjusted automatically by the same amount.

Using a Trailing Stop can give you greater freedom and flexibility, as you don’t have to monitor your position continuously and move your stop manually whenever your position runs into profit. If the price moves the Trailing Step distance in your favour, your stop level will automatically move the same distance to lock in your profit (while also reducing your margin requirement).

You can also convert an existing stop order into a Trailing Stop by finding the relevant position under Open Positions in the bottom window and clicking the Amend button. You then simply select Set Trailing Stop and enter your Trailing Step as usual, then click Submit.

Please note that your Trailing Step distance must be at least one point, and that you cannot use a Trailing Stop with a Guaranteed Stop or with Contingent Orders. As Trailing Stops are not guaranteed they may be subject to market gaps or slippage.

Trailing Stops may not be available on all markets. If unavailable you will not see the Set Trailing Stop box on the trade ticket.

Example of a Trailing Stop

Suppose you buy £1/point of GBP/USD at 1.6050, with a stop order at 1.6030. You decide to make your stop a Trailing Stop and set your Trailing Step at 10. This means that, if GBP/USD moves 10 points higher to 1.6060, your Trailing Stop will jump 10 points to 1.6040.

If GBP/USD continues to rally without retracing then, for every 10 points it rises, your Trailing Stop will carry on stepping higher in increments of 10 points. If at some point GBP/USD does turn lower, your Trailing Stop will remain in place at the last level it has stepped to, acting as a normal stop order to close your position.

o    Can I trade in pennies or cents?

Yes, you can include points of a whole unit in your stake, so long as the size exceeds the standard minimum stake. This applies to both opening and closing trades, including partial closes.

For example, you could buy £3.50 per point of a particular market. Your margin requirement, stop level and profit/loss will then all be based on £3.50 per point exactly. Later you might sell £2.25 per point of the same market. This would leave you with an open buy position of £1.25 per point, with the size of your stop order adjusted accordingly.

Although your opening trade must always exceed the minimum stake, when you partially close a position your remaining size could be less than the minimum stake.

  • Closing a trade

o    How do I close a trade?

The simplest way to close a trade is to find it under Open Positions in the bottom window and click the Close button. This will open the closing trade ticket, pre-populated with the trade required to close your position. So for example, if you have a £5/point buy position, the closing ticket will give you a £5/point sell position.

Alternatively, you can close your position by finding the market you originally traded and making an equal and opposite trade through the trade ticket. Your new trade will close the original position.

The profit or loss on your position is realised on closure and will be reflected in your account balance. Note that your position will also be closed automatically if your stop or limit levels are triggered.

o    What happens when my position expires?

Your trade on any given market is active until our market expiry time, as stated in our Market Information tables. If your position is open at this time it will be closed automatically and the profit or loss realised according to our settlement details for that market.

Many of our markets are offered on Rolling Daily contracts. This means that your position does not expire at the end of the day but automatically ‘rolls over’ to the next trading day, along with any attached orders. An overnight funding adjustment, which may be a debit or a credit, is applied at midnight UK time to any Rolling Daily position. (See What is a Rolling Daily contract? below.)

o    Can I partially close my position?

Yes, you can close less than the full size of your position. Alternatively, you can close more than the full size of your position, which will close your position and open a new position of the remaining size in the opposite direction. Please refer to the online User Manual for further details.

o    Can I hedge my open position by having a buy and sell trade on the same market?

Yes. If you tick the “Hedging” button on the Trade Ticket or Order Ticket, it will allow you to force open a new trade, creating both a long and short position in the same market. Please refer to the online User Manual for further details.

o    What is equity-based close-out?

Instead of using the automatic stop-loss you may be offered an alternative tool for managing losses on your account, known as ‘equity-based close-out’.

Under this system, rather than requiring you to have a stop-loss order attached to every position you open, we simply monitor your Account Valuation against your total Margin in Use. If your Account Valuation falls below a given percentage of your Margin in Use, the system will automatically close your open positions (at the next available opportunity) to protect you from greater losses.

You can of course still use stop-loss orders if you are on equity-based close-out, but they are not mandatory and will not determine your margin requirement. If you use a stop-loss order your position may be closed automatically even if your stop level has not been reached, should your Account Valuation fall below the required percentage.

The equity-based close-out percentage is quoted in our Market Information tables.

 

How does this work?

For each position you open, your initial margin requirement is calculated by multiplying the Min IM figure quoted in our Market Information tables (which differs by market) by your stake per point. When you open the position this amount is assigned from your Trading Resources to your Margin in Use.

While your position is open its running profit or loss will affect your Account Valuation. This figure is calculated by adding or subtracting the Open P&L from the Cash Balance on your account. It represents the total value of your account should you close all your open positions at this moment.

If your open positions are in profit then your Account Valuation will be higher than your Margin in Use. However, if your positions are running at a loss your Account Valuation may be lower than your Margin in Use, meaning that the total value of your account is less than the total amount you have committed as margin.

If your Account Valuation then falls below the required percentage of your Margin in Use the system will close your positions at the next available opportunity.

There are two ways to avoid this equity-based close-out if you are falling close to the required percentage:

  1. Add some funds to your account, so that your Account Valuation rises
  2. Close some of your open positions, so that your Margin in Use falls

 

We won’t contact you when you are running close to the equity-based close-out percentage, so it is your responsibility to monitor your positions closely.

Also, if an automatic close-out occurs the system cannot select individual positions to close, as we run an execution-only service. Instead the system will close all the open positions on your account.

 

Example

Say you have £10,000 on your account and you open six positions with a total margin requirement (calculated from the Min IM) of £9000. So your Margin in Use is £9000.

And say the equity-based close-out percentage is 50%. This means that your Account Valuation must stay above 50% of £9000, i.e. £4500, to avoid automatic close-out.

Your Account Valuation is calculated as your Cash Balance (£10,000) plus or minus your Open P&L. So if your open positions are running at a loss this will be subtracted from your Cash Balance to derive your Account Valuation.

Say your six open positions are running at a total loss of £5000, so that your Account Valuation has fallen to £5000. This is close to your automatic close-out threshold of £4500, so you decide to add some more funds to your account.

You add £2000 to your account, raising your Cash Balance to £12,000 and your Account Valuation to £7000, now comfortably above the threshold of £4500.

Alternatively you could close some of your open positions to lower your Margin in Use. For instance, closing two of your positions might lower your Margin in Use to £6000. So your automatic close-out threshold is now 50% x £6000 = £3000.

Note that this will realise some of your running losses, reducing your overall Cash Balance, but your Account Valuation will now be comfortably above the new threshold of £3000.

If you have any further questions about equity-based close-out please contact our dealing desk on +44 (0)20 7456 7590.

  • Managing your positions

o    How do you charge me for my trading?

Our dealing charge is incorporated in our dealing spread when you trade. There is no extra commission to pay. In the case of trading on shares, our quoted dealing spread is added to the variable market spread for the market concerned.

You may also have to subscribe to certain data feeds to view the prices for particular groups of shares, and there may be associated fees for these subscriptions. You can manage all your subscriptions in the My Account panel, under Subscriptions.

o    What is a Rolling Daily contract?

Our Rolling Daily contracts provide a cost-effective solution for short- to medium-term trading. These contracts do not expire at the end of the day but are automatically ‘rolled over’ to the next trading day. Any corresponding orders are also rolled over automatically.

An overnight financing rate is applied on a daily basis to reflect the interest cost of holding your position. Typically this can be a credit to your account for a short position or a debit to your account for a long position. The adjustment is applied at midnight UK time.

Rolling Daily contracts are available on indices, equities and FX, and combine the tight spreads available on a short-term expiry with the flexibility of a longer-term contract. As the rollover happens automatically you don’t have to worry about your positions expiring at the end of the day.

o    How are the UK 100 and Wall Street Rolling Daily prices calculated?

This is a common question for spread betting and CFD companies as it does cause some confusion with clients. In short, our Rolling Daily quotes are derived from the relevant futures contract rather than the underlying cash index, as outlined below.

Each major index quoted by Investors Intelligence Spread Betting is related to a specific futures market. For example our quotes for UK 100 futures are based on the LIFFE FTSE futures market. Prices in the underlying futures market reflect the present value of the index concerned with some time-based adjustments. These adjustments, known as the ‘fair value’, are calculated from the theoretical value of dividends payable and the cost of carry between the current day and the expiry of the relevant futures contract.

In order to derive our Rolling Daily quotes, Investors Intelligence Spread Betting will offset the price for the relevant futures contract by the current fair value, effectively removing the fair value built into the futures contract price. Therefore the Rolling Daily price is derived from the futures price and not vice versa. We do this because the underlying cash index tends to lag the level of its derivatives and does not react in such a timely manner to market-moving news.

o    How do you derive your prices for shares?

We price our bid using the underlying market bid and our offer from the underlying market offer. Our own spread is then added around the underlying market bid/offer to create our spread betting quote. If the underlying market bid/offer spread widens or narrows then our quote will widen or narrow with it.

For futures on individual shares (our quarterly markets) we take the underlying market price and add the cost of carry from the trade date until the expiry date while removing any dividends or capital repayments on those shares which go ex-dividend or make payments between the trade date and the expiry date.

o    How do you derive your FX prices?

We subscribe to a data feed which gives us the best bid and offer in the market from several major banks in any given currency pair. The best (i.e. highest) bid might be from one bank, and the best (i.e. lowest) offer might be from another bank. We take the midpoint of the best bid and offer and put our spread (which remains fixed) around this midpoint to derive our price.

o    Why do FX prices differ between providers?

There is no single exchange on which all FX trades are transacted, and so there is never a single price at which you can say that a given currency pair is trading. Bank A might sell GBP/USD to Bank B at 1.7750, while at exactly the same time Bank C might sell GBP/USD to Bank D at 1.7755. Bank A may record its trades to a database to which Data Vendor X has access, while Bank C might record its trades on a separate database to which Data Vendor Y has access. For this reason, it is highly possible for two different data feeds to be showing two different prices at exactly the same time in the same currency pair.

o    How does fractional pip pricing work?

We price FX pairs to reflect the underlying interbank market by quoting an extra digit to many of the prices. This gives you a better and more accurate price on which to trade.

On some trade tickets the very last number in the price will be a smaller digit, which represents tenths of a pip. In this case your unit stake (your size per pip) is still based on the last large digit quoted, but your trading price will include the smaller digit for greater accuracy.

Taking GBP/USD for example, rather than quoting this market to four decimal places (e.g. 1.5850-1.5852) we have added a smaller digit to quote the market to five decimal places. Say you buy £10/pip at 1.58521 and sell at 1.58526, your profit would be £10 x 0.5, or £5.

o    What happens when a share goes ex-dividend?

Most UK shares start trading ex-dividend on a Wednesday morning, following a dividend announcement after the previous day’s close. This is the first date on which you will not qualify for the dividend if you purchase the shares and, as a result, the price of the shares generally drops by the amount of the dividend.

To account for the value of the dividend, we make a cash adjustment to your account, either as a credit or a debit depending on whether you have a long or a short position on the relevant share:

1. If you have a buy position in a share which goes ex-dividend we will credit your account by the gross dividend multiplied by your trade size multiplied by the applicable haircut adjustment (standard percentage for UK shares is 80%).

2. If you have a sell position in a share which goes ex-dividend we will debit your account by the gross dividend multiplied by your trade size multiplied by the applicable haircut adjustment (standard percentage for UK shares is 100%).

For example, if Lloyds TSB declares a dividend of 7.5p, a client with a long (buy) position of £10/point would receive 7.5p x £10 x 80%, or £60. A client with a short (sell) position of £10/point would be debited 7.5p x £10 x 100%, or £75.

The haircut adjustment is applied to factor in tax, clearing and other charges. There may also be individual occasions when companies make payments (whether dividend, return of capital etc) in addition to scheduled dividends. In these cases the relevant adjustment will be made on the effective date.

If you have an open position on an index and a share within that index goes ex-dividend, this will also have a direct effect on the level of the index, so we will also make cash adjustments in this case on the ex-dividend date.

Clients with long positions on an index will be credited and clients with short positions will be debited to reflect the ex-dividend change in value of the index, subject to the same haircut adjustments.

  • Overnight financing

o    What is overnight financing?

For Rolling Daily contracts an overnight financing rate is applied on a daily basis to reflect the interest cost of holding your position. (See What is a Rolling Daily contract? above.)

While it is normal for equity and index long positions to incur a debit and for short positions to receive a credit when overnight financing is applied, there are times when you may be debited for a short position, for example when interest rates are very low.

Overnight financing for FX positions works slightly differently, as the applicable interest rate is calculated from the difference between the two base rates of the underlying currencies concerned. (See How is the financing calculated? below.)

For a position held on a Friday or prior to a Investors Intelligence Spread Bettingn on-business day, financing will be applied according to the number of days until the subsequent Investors Intelligence Spread Betting business day.

For example, for a position that is held from a Friday to a Monday, financing will be applied for three days. Any profits or losses are realised when the position is closed.

o    How is the financing calculated?

Overnight financing for rolling positions can be calculated using this formula:

F = [(P / U) x S x I] / B

Where:

F overnight financing P day’s closing price U unit risk
S position size B yearly day basis (365) I applicable interest rate

 

The applicable interest rate for long positions is RFR + 2.5%.

The applicable interest rate for short positions is RFR – 2.5%.

 

Relevant Funding Rate (RFR)

Shares and indices: The RFR is generally equivalent to the base rate of the underlying currency of the country of the market concerned. If you are long of a share or index contract, this equates to real market cash exposure and so interest may be charged on this cash value for each day that the position is held open overnight. If you are short of a share or index contract, an interest return may be paid on these equivalent cash funds.

For example, the RFR for Wall Street Rolling Daily will be based on the US Federal Funds Rate, so the applicable interest rate for a long position on Wall Street would be the Fed Funds Rate plus 2.5%, and for a short position the Fed Funds Rate minus 2.5%.

Currencies: The RFR is calculated as the funding rate corresponding to the second currency of the FX pair concerned minus the funding rate corresponding to the first currency. For example, the first currency of GBP/USD is sterling and the second is the US dollar, so the RFR is calculated as the dollar rate minus the sterling rate. Therefore, if the dollar rate is 1% and the sterling rate is 0.5% then the RFR for GPB/USD would be 1% – 0.5%, or 0.5%.

Say the funding rates are as follows (these rates are indicative and are not necessarily representative of correct rates):

GBP: 0.5% EUR: 1.0% USD: 1.0%

 

The RFR of the following currency pairs would therefore be calculated as:

FX pair RFR Calculation
EUR/GBP –0.5% (0.5% – 1.0%)
GBP/EUR 0.5% (1.0% – 0.5%)
EUR/USD 0% (1.0% – 1.0%)

 

Note: Remember to add 2.5% to the RFR for long positions and subtract 2.5% for short positions, to derive the applicable interest rate.

 

Unit risk

Your unit risk is the price movement on the relevant contract that would result in a profit or loss equal to your position size. In other words it is the amount the price needs to move for you to make or lose 1 x your stake.

For example, on GBP/USD a movement of 0.0001 in the price would result in a profit or loss on your trade equal to your full position size and so the unit risk for GBP/USD is 0.0001.

Overnight financing examples (spread betting)

Note: The rates used for these examples are indicative and are not necessarily representative of correct rates.

Shares

BUY £8 per point of a UK share Rolling Daily
Unit risk 1 (0.5% + 2.5%)
Applicable interest rate 3%
Closing price 550.1p

 

An £8/point long position with a closing price of 550.1p would be equal to a market exposure of £4400.80. This is because you would need to buy 800 shares to create the same market risk, and 800 x 550.1p = £4400.80.

You multiply this figure by the applicable interest rate to calculate the annual cost of borrowing: 3% x £4400.80 = £132.02.

Divide this by 365 to reach the daily charge: £132.02 / 365 = £0.36.

As you are long of the share, your account would be debited £0.36 for overnight financing.

SELL £8 per point of a US share Rolling Daily
Unit risk 0.01 (1% – 2.5%)
Applicable interest rate –1.5%
Closing price $32.29

 

Calculation:

[(32.29 / 0.01) x 8 x –1.5%] / 365 = –£1.06

As this is a short (selling) position, your account would normally be credited the financing adjustment but, because the outcome is negative, you will actually be debited £1.06.

Indices

SELL £5 per point of UK 100 Rolling Daily
Unit risk 1 (0.5% – 2.5%)
Applicable interest rate –2%
Closing price 5820

 

Calculation:

[(5820 / 1) x 5 x –2%] / 365 = –£1.59

Your account would be debited £1.59 as overnight financing.

BUY £1 per point of Wall Street Rolling Daily
Unit risk 1 (1.0% + 2.5%)
Applicable interest rate 3.5%
Closing price 13005

 

Calculation:

[(13005 / 1) x 1 x 3.5%] / 365 = £1.25

You are debited £1.25 for holding this position overnight.

Currencies

BUY £12 per pip of GBP/USD Rolling Daily
Unit risk 0.0001 (1.0% – 0.5% + 2.5%)
Applicable interest rate 3%
Closing price 1.5250

 

Calculation:

[(1.5250 / 0.0001) x 12 x 3%] / 365 = £15.04

Your account would be debited £15.04 as overnight financing.

SELL £6 per pip of GBP/USD Rolling Daily
Unit risk 0.0001 (1.0% – 0.5% – 2.5%)
Applicable interest rate –2%
Closing price 1.9250

 

Calculation:

[(1.9250 / 0.0001) x 6 x –2%] / 365 = –£6.33

Your account would be debited £6.33 as overnight financing. For a sell position you are credited the overnight financing but, because this calculation has returned a negative number, you will actually be debited this amount.

Likewise if you hold a buy position and the calculation returns a negative number you are actually credited this amount.

Overnight financing examples (CFDs)

Note: The rates used for these examples are indicative and are not necessarily representative of correct rates.

Shares

BUY 800 CFDs in a UK share
Unit risk 1 (0.5% + 2.5%)
Applicable interest rate 3%
Closing price 550.1p

 

Your 800 CFDs at a closing price of 550.1p give you a market exposure of £4400.80, or £8 per penny. You multiply this figure by the applicable interest rate to calculate the annual cost of borrowing: 3% x £4400.80 = £132.02.

Divide this by 365 to reach the daily charge: £132.02 / 365 = £0.36.

As you are long of the share, your account would be debited £0.36 for overnight financing.

SELL 800 CFDs in a US share
Unit risk 0.01 (1.0% – 2.5%)
Applicable interest rate –1.5%
Closing price $32.29

 

Your 800 CFDs give you a market exposure of $25,832, or $8 per cent. You multiply this by the applicable interest rate to calculate the annual cost of borrowing: –1.5% x $25,832 = –$387.48. Divide this by 365 for the daily charge: –$387.48 / 365 = –$1.06.

As this is a short (selling) position, your account would normally be credited the financing adjustment but, because the outcome is negative, you will actually be debited £1.06.

Indices

SELL 10 CFDs in UK 100 Cash
Unit risk 1 (0.5% – 2.5%)
Applicable interest rate –2%
Closing price 4722

 

Calculation:

[(4722 / 1) x 10 x –2%] / 365 = –£2.59

As this has returned a negative value, your account would be debited rather than credited with £2.59 as overnight financing.

BUY 1 CFD in Wall Street Cash
Unit risk 1 (1.0% + 2.5%)
Applicable interest rate 3.5%
Closing price 10350

 

Calculation:

[(10350 / 1) x 1 x 3.5%] / 365 = $0.99

Your account would be debited $0.99 for holding this position overnight.

Currencies

BUY 1 CFD in Spot GBP/USD
Unit risk 0.0001 (1.0% – 0.5% + 2.5%)
Applicable interest rate 3%
Closing price 1.8550

 

Calculation:

[(1.8550 / 0.0001) x 1 x 3%] / 365 = $1.52

Your account would be debited $1.52 as overnight financing.

SELL 5 CFDs in Spot GBP/USD
Unit risk 0.0001 (1.0% – 0.5% – 2.5%)
Applicable interest rate –2%
Closing price 1.8550

 

Calculation:

[(1.8550 / 0.0001) x 5 x –2%] / 365 = –$5.08

Your account would be debited $5.08 as overnight financing. For a sell position you are credited the overnight financing but, because this calculation has returned a negative number, you will actually be debited this amount.

Likewise if you hold a buy position and the calculation returns a negative number you are actually credited this amount.

o    Can I roll my positions on futures?

Yes, Investors Intelligence Spread Betting also offers the facility to roll your positions on futures to the next contract period. If you choose to roll any quarterly or monthly contracts, you will need to contact us shortly before our expiry date/time to leave a rollover instruction.

For equities, Investors Intelligence Spread Betting will close the existing trade spread-free (at just the market price) and open a new position in the subsequent quarter at half of the spread. For indices, commodities and forex, we will close the trade at our midpoint and open a new position in the subsequent quarter at the corresponding level.

Please note that, on rollover of futures contracts (unlike Rolling Daily contracts), the existing trade is closed, realising any profits or losses incurred, and a new position is subsequently opened.

  • Managing your account

o    How can I view my previous trades?

You can see details of your trades in the bottom window of the dealing platform. Click Account Activity to view all the activity on your account during the current day, or click Statement to view trades and other activity for any specified period up to the last 90 days.

If you require more than 90 days’ account history please contact Customer Support at support@investorsintelligencespreadbetting.com for this information in PDF format.

o    How can I view my open positions?

Click Open Positions in the bottom window to view your current live positions, including an update on your running profit or loss per position. Select Aggregated if you want to show an aggregated view of multiple positions on the same market.

This list also includes the stop-loss and limit orders attached to your open positions. Remember that a stop will automatically be attached to your position if you do not specify your own stop level.

o    How do I change my contact details?

Please contact Customer Support at support@investorsintelligencespreadbetting.com or +44 (0)20 7456 7589 to advise us of any change in your contact details.

If a problem occurs on your account, it is important for us to be able to contact you. Please ensure that your email address is always up to date and, if necessary, please check to ensure that your inbox has not exceeded its limit. We send all trade confirmations and other important notices via email and it is your responsibility to provide us with the correct contact details. Your trade confirmations are proof of the trades you have made and are thus important in the event of any query.

If you move house, please contact Customer Support to advise us of your new address. If we are unable to confirm your new address electronically we will require some documentation, details of which will be provided at the time.

o    How do I change my password?

You can change your password via the My Account area of the dealing platform. Your password will then be securely encrypted in our system.

o    What if I’ve forgotten my username/password?

If you’ve forgotten your password, please call Customer Support on +44 (0)20 7456 7589. We will conduct a security check to confirm your identity, then generate an email with a temporary password. You can use this to access your account and then change your password to something more memorable. Your password will then be securely encrypted in our system. Please note that we cannot send your original password via email for security reasons.

Alternatively, click ‘Forgotten your details?’ from the Login page and use the ‘Reset your password’ box to request a temporary password. Please note that we cannot send your original password via email for security reasons.

If you’ve forgotten your username please call or email us at support@investorsintelligencespreadbetting.com and we will send you some information that will remind you of your username.

o    Do I get a confirmation email when I trade?

Yes, you will receive a confirmation via email for each trade you make, whether you trade online or by telephone.

o    Will I receive a statement?

You can view a statement of your account online once you have logged into the dealing platform. Click Statement in the bottom window and select the desired period of your statement. You can also click to download your statement in Excel format.

If you need more than 90 days’ account history, please contact Customer Support on +44 (0)20 7456 7589 for the information you require.

  • Complaints procedure

o    How do I make a complaint?

For information on our complaints procedure, please click here.

  • Other questions

o    What are the system requirements to run the dealing platform?

We support PC platforms including Windows 2000, XP, Vista and 7. We also support Apple Mac platforms.

Most modern PCs will run our dealing software successfully, but in order to achieve the best performance we recommend that you have at least 1.8 GHz Pentium IV (or equivalent) processor with 512MB of RAM. Other programs installed and running could affect the performance of the website.

The Investors Intelligence Spread Betting dealing platform is accessed via HTML (the internet) and therefore you do not need to download any additional software onto your computer. As a general rule, we design our software to work with most browsers on any system with any ISP (Internet Service Provider) broadband connection.

You may need to upgrade some of your existing software for ideal performance. The answers below will guide you through this. If you have any questions please call our Customer Support team on +44 (0)20 7456 7589 and we will be pleased to help.

o    What do I need to do to view your charts?

You will need to have Adobe Flash installed to view our price charts on the dealing platform. You can download the latest version of Flash free at: http://get.adobe.com/flashplayer/

o    Which internet browser should I use?

You can access the Investors Intelligence Spread Betting dealing platform using the latest versions of most main browsers. However, we would recommend that you use Google Chrome, Mozilla Firefox or Apple Safari for ideal performance.

If you attempt to access the platform using an AOL browser, it is possible that you may experience problems logging in.

Click below to download the latest versions of these browsers for free:

Google Chrome
Mozilla Firefox
Apple Safari

o    Do I need to adjust my monitor/screen settings?

You will get the best results from our platform if you set your screen resolution to a minimum of 1024 x 768 pixels. If you require assistance in doing this, please call our Customer Support team on +44 (0)20 7456 7589 and we will be happy to help.

o    Can I trade using an Apple Mac?

Yes, our platform is fully compatible with the Apple Mac. We recommend that you use Apple’s Safari browser, which you can download free at: support.apple.com/downloads/#safari.

o    What about cookies?

Our dealing platform uses session cookies and these must be enabled before you can login. Cookies are small amounts of data that a website can send to your web browser and store on your computer. Cookies do not contain personal information about you (unless you knowingly provide it). We use cookies to securely verify your identity, enhancing navigation and the functionality of our website. For more information please see our Data Protection and Privacy Policy.

Please follow the instructions below to allow your browser to accept session cookies. If you have any questions, please call us on +44 (0)20 7456 7589.

Chrome
Click at the top-right to customise Chrome, then select Settings from the drop-down menu. Under Privacy (in the advanced settings) select Content Settings. You will now see a range of options for your cookie settings. Select ‘Allow local data to be set’.

Internet Explorer
Click Tools at the top-right, then select Internet Options from the drop-down menu. On the Privacy tab, move the slider to Medium, Low or Accept All Cookies.

Firefox
Click at the top-left to open the drop-down menu, then select Options, and Options again. From the pop-up box select the Privacy panel, then set History to ‘Remember history’ or ‘Use custom settings’ to allow cookies.

Safari
Click the cog icon at the top-right, then select Preferences from the drop-down menu. Select the Privacy panel, then set Block Cookies to ‘Never’ or ‘From third parties and advertisers’.

o    Are firewalls a problem?

Although we have taken care to design the Investors Intelligence Spread Betting platform to be compatible with the most popular firewall packages, it is quite possible that specific firewall settings could limit your experience of our dealing software. If you are using a firewall and are not sure whether it is the cause of your problem, please email us at support@investorsintelligencespreadbetting.comwith details of the type of firewall you’re using.

As a simple test, you could shut down your firewall for a few seconds while you reload the platform. If you’re still experiencing trouble most likely your firewall is not the root cause. If the problem is no longer evident, your firewall is most likely blocking or changing certain content. In this case it would be a good idea to contact your firewall vendor for support.

o    How can I view the live prices on your homepage?

You need to be running Adobe Flash version 9 or later to view the live prices on our homepage. You can download the latest version of Flash free at: http://get.adobe.com/flashplayer/.

o    How secure is the Investors Intelligence Spread Betting platform?

The Investors Intelligence Spread Betting dealing platform is protected by an SSL certificate verified by Thawte. SSL certification is the industry standard for financial transactions, and means that any data shared between you and the platform is encrypted to ensure your privacy and security. Thawte is a leading global certification authority. Find out more about Thawte.

o    Is my money safe with Investors Intelligence Spread Betting?

Investors Intelligence Spread Betting is a trading name of London Capital Group Ltd (LCG), part of an AIM-listed financial services organisation. LCG is authorised and regulated by the UK Financial Conduct Authority (FCA). In accordance with the FCA’s client money rules, any funds you deposit or make with Investors Intelligence Spread Betting will be held in a segregated account, entirely separate from other company funds. Click for more information.

 

To access our data please subscribe or open a trading account.