CFD Common Enquiries
Your account
Trading CFDs
Orders
Margins & Dividends
Trading Costs
Your account
What do I do if my personal details change?
If your address or other details change, please login to your account and update your details online. Alternatively you can call us on 0845 356 0163 (Lines are open between 8am to 8pm Monday to Friday).
How do I transfer funds into my account?
You can transfer funds into your account using the following methods:
>Using a debit card: Firstly, you need to register a debit card with us by calling customer services (0845 356 0163). Once you have registered a card with us you will then be able to deposit funds online.
>By cheque: please note that cheques can take up to 10 business days to clear.
>By direct bank transfer: To obtain our bank details and information about depositing funds into your account via direct bank transfer, please call customer services(0845 356 0163). Please note that we are unable to accept cash payments into the account and will only accept bank transfers.
How do I transfer funds out of my account?
In order to transfer funds out of your account, you will need to call customer services (0845 356 0163).
To protect our clients from identity fraud, we will only return funds to clients via the same method they were received.
For example, if you deposit funds into your account via your debit card, funds will be returned to you via the same debit card, which must be registered on your account.
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Trading CFDs
What does trading as principal mean?
In conventional share trading clients will deal through a broker who places their trade with a range of market makers. The stockbroker is acting as an agent, searching out the best price for their client. This is not the case with CFD trading. In this instance you are dealing with the provider and are contracting directly with them.
How long can I hold a CFD for?
There is no expiry for a CFD trade, but please remember that if you hold a long position you will be charged overnight funding.
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Orders
How do I place a guaranteed stop loss order?
You can leave a guaranteed stop when you open your position, either online or by phone. You will be charged a small premium for placing your guaranteed stop.
What is a linked stop loss order?
A linked stop loss is a stop order that is put in place to limit the risk of a market moving against a current open position. If the open position is closed, either by an opposing trade or order activation, then the linked stop loss order ceases to exist.
What is a linked limit order?
A linked limit is a limit order that is linked to an open position. If that open position becomes closed for any reason then the linked limit order will cease to exist.
Can I amend stop loss orders when the market is closed?
No. You are unable to amend existing orders out of market hours.This is because your current orders may be used to establish your margin requirements and as such we cannot allow them to be amended when markets are closed.
Can I amend/cancel orders and if so, how?
You can amend or cancel an Active Order by entering the 'Active Order' tab on the trading platform. Please note you can amend or cancel a Limit Order outside of trading hours, but not stop loss orders.
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Margins & Dividends
What is Margin Requirement?
Margin Requirement is the deposit required in respect of each open position on your account. When you place a trade you must have enough funds to cover the Margin Requirement applicable to that trade. You must also maintain the Margin Requirement deposit level above any profits/losses on your account.
How do I calculate Margin Requirements?
Please make sure you are aware of the Margin Requirement applicable before you open each trade and you can find details of these for particular Markets within the relevant Market Information tab, which is located on the Trading Platform next to each Market.
How do I find out what the Margin Requirement is on an individual stock?
You can find details of the Margin Requirements and charges for particular Markets within the relevant Market Information tab, which is located on the Trading Platform next to each Market. If you are unsure of Margin Requirements for a particular market/stock you should always call the dealing desk to confirm before placing a trade to ensure you have enough funds to trade.
Will my profitable positions offset losses on my negative?
Yes, open profits or losses are both taken into account when calculating margins.
Who is responsible for monitoring my Margin Level?
It is your responsibility to monitor your positions and to ensure you have sufficient funds in your account to cover them. If your Margin Level is at or below the Margin Close Out Level, we may close all or any of your Open Positions immediately and without notice at the next available price. If you are in any doubt as to the position of your account or if additional funds are required, please contact us on 0845 356 0163.
What are the rules for payment of margin?
If the Margin Level for your Account reaches or falls below the Margin Close Out Level, we may close all or any of your Open Positions and refuse to execute new Trades until your Margin Level is greater than the Margin Close Out Level. We may take such action immediately and without notice. We may also cancel your Orders and take other steps if your Account reaches or falls below the Margin Close Out Level.
Do I receive dividends the same way as shares?
CFDs are subject to a dividend adjustment intended to replicate the net dividend payment applicable to the ordinary share. A dividend adjustment is credited to long positions and debited from short positions held at the close of business on the day before the ex-dividend date. Payment is credited or debited to your account on the ex-dividend date.
Trading Costs
Why is there a charge to hold the position open when I have paid a commission?
You only pay a financing charge if you hold a long position. This is because CFDs are a margined product. You only deposit a fraction of the overall value of the trade (typically 10%), allowing you to make a much larger potential investment than if you were buying the shares. So for example, £1,000 would be needed to buy a CFD representing £10,000 worth of shares. You are effectively 'borrowing' the £9000 difference, hence the financing charges.
Do I get charged commission for buys and sells?
Yes. The opening and closing trade is effectively two separate trades, and therefore you are charged commission for each trade.
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