About Twowayspreads
Who are your clearers?
We use Royal Bank of Scotland.
a) Who owns Twowayspreads/are you registered by the FSA/how long have you been in
existence?
b) Twowayspreads is a trading name of Worldspreads Limited, which is wholly owned
by WorldSpreads Group plc, a publicly quoted company listed on AIM and Ireland’s
Enterprise Securities Market. WorldSpreads Group plc has been in existence since
2000.
WorldSpreads Limited is authorised and regulated in the UK by the Financial Services
Authority, with registration number 230730.
What are you dealing hours?
Trading hours for each market we offer can be found by clicking on the information
icon which is located next to the instrument you’ve chosen. Alternatively, you can
refer to our Market Information Sheet on our website which can be found under Knowledge
Centre.
What are your spreads on instruments?
We offer fixed spreads but these vary according to the time of day and also the
account type you choose. Specific details for market spreads can be found by clicking
on the information icon which is located next to the instrument you’ve chosen. Alternatively,
you can refer to our Market Information Sheet on our website which can be found
under Knowledge Centre.
Where can I find margin requirements for each market?
Margin requirements for each market we offer can be found by clicking on the information
icon which is located next to the instrument you’ve chosen. Alternatively, you can
refer to our Market Information Sheet on our website which can be found under Knowledge
Centre.
Does a Demo account work exactly the same as a live account?
Yes, Demo Accounts work exactly like the live accounts other than you will be trading
with Demo Dollars rather than real money.
Can I place bets in a currency other than GBP?
You can nominate one base trading currency for the trading platform. Choose from
either: Euros, Pounds or Dollars and process all your transactions in that reference
currency.
What are the system requirements for your platform?
The following Browsers are required to run the platform:
- Firefox 3 or higher
- Internet Explorer 6 or higher
- Safari 5 or higher
- Google Chrome 5 or higher
Does your platform/software have any download requirements?
Java 1.4.2 or higher is required to run Charts
Bet Types
What is the difference between the Daily Rolling Cash and Rolling Futures bet types?
When placing a new bet, you need to consider which type of bet that you wish to
place on that market. Twowayspreads offer a range of bet options that are available
to suit the desired duration of your trade. These range from only a few minutes,
to a single day, to 3 months in length, and even one where there is no defined end
date.
Daily Rolling Cash Bets - these bets do not expire at the end of the day
and are automatically ‘rolled over’ to the next trading day (subject to overnight
financing charges) Prices of these will generally reflect the ‘spot’ price, that
is commonly quoted in newspapers, on television etc.
Daily Rolling Future Bets - these bets do not expire at the end of the day
and are automatically ‘rolled over’ to the next trading day (subject to overnight
rolling charges). Prices of these will generally reflect the quote of the underlying
futures market, with the cost-of-carry built in.
Quarterly Bets – these bets do expire on a set date up to three months in
the future and do not incur financing (or rolling) costs – it is all built into
the price, up front.
General Dealing
Why do spreads sometimes widen or tighten?
On the underlying markets, there are no such things as a fixed spreads. Spreads
vary according to liquidity and therefore when the markets are very active, with
large volumes buyers and sellers the difference between the buy and sell price is
driven tighter, and vice versa for when markets are quiet. This is especially evident
on shares and therefore when you are spread-betting, the difference between the
buy and sell prices will not always be a fixed difference – they are reflective
of the underlying order books of each security, at the time you trade.
For indices and forex however, we have committed to a fixed spread in order to offer
you more stability and certainty. You therefore can be more confident that getting
out of a position will cost no more than it did to enter into. In order to be mutually
fair to both parties, we do adjust our spreads to suit trading periods based on
average market activity for that period, ie tighter in typically busy (liquid) periods
and wider during quiet periods.
Can I choose to close only part of a live position?
Yes you can. To partially close a position, you simply place an order in the opposite
direction but for a reduced amount (stake).
You can fully close the any position, either by using the ‘close function in the
“open bets” summary, or by placing a new, equal and opposite trade.
Can I keep my positions open at the end of the day?
Yes you can. Daily Rolling bets automatically ‘roll-over’ at the end of the trading
day. If you decide to roll any quarterly, monthly or daily cash contract, you will
need to contact us shortly before our expiry time to leave a rollover instruction.
For equities Twowayspreads will close the existing trade spread-free (at the market
price) and offer the subsequent quarter at half of our spread. For indices, commodities
and forex markets, Twowayspreads will close the trade at our mid-point and offer
the subsequent quarter at the corresponding bid or offer level. On rollover of futures
contracts, the existing trade is closed, realising any profits or losses incurred
and a new position is subsequently opened.
What is the maximum/minimum I amount I can stake per point?
The minimum new bet size is £1 per point. There is no explicit maximum however;
it is dependent upon your available trading funds, the liquidity in the underlying
instrument and at the dealer’s discretion.
How do you calculate rollovers?
Adjustments are calculated on the basis of official interest rates, including a
2.5% margin haircut. Please note that this adjustment may be positive or negative.
In particular, at times of low interest rates, the adjustment on a short position
may be negative. For daily rolling futures positions, there is a rolling adjustment
of one index point per day.
Example: Buying Shares
You buy Vodafone at 125p for £10 per point. The underlying value of your position
is 125p x £10 = £1,250
Assuming LIBOR interest rate is 3%, and adding the 2.5% haircut = 5.5% pa. Divide
by 365 days = 0.015% per day If you multiply the daily rate by daily exposure i.e.
0.015% x £1,250 = £0.19 charge
Example: Selling Shares
You sell Vodafone at 124p for £10 per point. The underlying value of your position
is 124p x £10 = £1,240.
Assuming LIBOR interest rate is 3%, and subtracting the 2.5% haircut = 0.5% pa.
Divide by 365 days = 0.0013% per day.
If you multiply the daily rate by daily exposure i.e. 0.0013% x £1,240 = £0.016
receipt.
The above process is applied in exactly the same way to rolling Cash indices and
gold spot contracts.
How do you calculate FX rollovers?
The principal behind FX roll-overs is that you receive the deposit interest of the
currency you are long of and pay the borrowing cost of the currency you are short
of.
If the interest rate of the currency you are long of is higher than that of the
currency you are short of you will receive money.
If the interest rate of the currency you are long of is lower than that of the currency
you are short of you will pay.
In the wholesale market this interest rate differential calculation is expressed
as a points adjustment (positive or negative) relative to the currency spot rate.
Our adjustment is currently: Long IR - Short IR - 2.5% This result may be positive
or negative.
Examples: GBP/USD
Interest Rate GBP 3.20% and USD 3.35% Spot rate 1.5300
Per £1 long: (3.20 - 3.35 - 2.5) x 15300 / 365 / 100 = -1.11
Per £1 short: (3.35 - 3.20 - 2.5) x 15300 / 365 / 100 = -0.99
Pricing
How are Quarterly Share prices calculated?
For UK shares we price our bid using the underlying market bid and the offer from
the underlying market offer. Our spread is then added around the underlying market
bid/offer to create 'our quote'. On a day-to-day basis the difference between our
bid and the underlying market bid will remain the same as will the difference between
the offer prices. If the underlying market bid/offer spread widens/narrows then
our quote will widen/narrow with it. We derive future individual share prices (quarterly
markets) by taking the underlying market price and adding the cost of carry from
the trade date until the expiry date.
Order Types
What types of orders do you offer?
- Normal stop loss orders
- Guaranteed stop loss orders
- Trailing stop loss orders
- Limit orders
- One-Cancels-Other (OCO) Orders
- If-done orders
What’s the difference between a trade & an order?
A trade is when you want to place a trade at the current market levels, an order
is a request to open or close a trade at a different level to the current market
price.
Can I put in a stop loss or limit order after I’ve placed my trade?
Yes, simply select the open bets tab, then select ‘add’, a window then appears containing
prompts to place a stop loss/limit order against your current live position.
What is the difference between ‘market’ and ‘our quote’?
‘Our Quote’ is an order based on our price, ie at the market price with our spread
included. ‘At Market’ means your stop will be triggered first by the underlying
market level with our spread added to it upon execution.
What do you charge for Guaranteed Stop Losses?
Guaranteed stop loss charges are dependent on the contract you’ve chosen to trade.
The charge for Guaranteed Stop Losses can be found on the Market Information Sheet
and the charges are detailed on the far right column of this document. Alternatively,
phone the Customer Services Desk on +44 (0)207 099 1138
Guaranteed stop loss charges are dependent on the contract you’ve chosen to trade.
The charge for Guaranteed Stop Losses can be found on the Market Information Sheet
and the charges are detailed on the far right column of this document. Alternatively,
phone the Customer Services Desk on +44 (0)207 099 1138
Guaranteed stop loss charges are dependent on the contract you’ve chosen to trade.
The charge for Guaranteed Stop Losses can be found on the Market Information Sheet
and the charges are detailed on the far right column of this document. Alternatively,
phone the Customer Services Desk on +44 (0)207 099 1138
How does the trailing stop function work?
The trailing stop loss function allows you to set an automatic instruction to move
your stop loss as your position moves further into profit. For example, if you initially
set your stop loss at 50 points away from the price you entered at, you can also
set a command for the order to follow (or trail) your position into profit. This
is a great way to protect profits. You can also choose the frequency that it moves,
for instance, if you select the trailing stop loss to 1 you are instructing the
platform to move your stop loss up to sit 50 points below the price of the market
permanently, every time it moves 5 1 points in your favour.
What is the hedging facility?
The hedging facility offers you the opportunity to have directionally opposing bets
in the same contract at the same time. For instance, if you have a short position
in the UK 100 Rolling Future, you can also open a long position simultaneously.
Other spread-better’s platforms don’t let you do this because after the initial
short position was opened, any subsequent buy order in the same contract would net
off the sell order and close the position, realising any profit or loss. Our platform
enables you to ‘force open’ a new position (in our example this would be long) by
selecting the ‘hedging’ button. This means you have full control over which trades
you open and close and when that happens. This feature was is particularly popular
for clients with certain technical trading strategies.
Margin
What is the Deposit Requirement ?
Initial margin refers to the funds in your account which are allocated to open and
maintain a position. Each market or instrument carry different margin requirements
and these are set in-line the volatility/liquidity of that instrument’s in the underlying
markets.
How is Margin calculated?
Margin is calculated in two ways; either as a percentage of the value of the position
and or by using a fixed notional amount.
The percentage method is used on individual shares because of the number of different
instruments. For example, ‘blue chip’ shares, which are deemed to be liquid (ie
readily available to enter and exit with sufficient volume and tight spreads), carry
a lower margin requirement percentage. Such examples of these are those found in
the FTSE100. These shares are margined at between 5 and 10 per cent.
Shares which are less liquid - and therefore more volatile – require a higher margin
percentage; this controls two aspects, i) ensures that you have deposited margin
which is more relative to the liquidity of the instrument and ii) limits the potential
to have a large position in a share which has the potential for greater movements
in price (volatility) and therefore result in larger swings of P&L. Examples of
these shares are FTSE Smallcap or AIM shares and these are therefore typically margined
higher levels, ie between 10 and 20 percent.
Other financial products (indices, commodities and foreign exchange) are margined
using fixed notional requirements. This makes it easier for the client to know how
much margin is required to deposit as it does not vary as the price of the instrument
changes. For example, the UK 100 requires only a £40 margin deposit for each £1
stake.
How do I calculate margin for shares?
Once you have identified a share you want to trade, simply obtain the required margin
percentage from our Rates page, multiply that by the price of the share and then
multiply the result by your desired stake. For example, if you have decided to trade
on Rio Tinto (the mining company), which carries a 5% margin requirement, and the
current price is £34.76 (3,476 pence) and you wish to trade £1 per point then your
margin would be 3,476 (share price) x 0.05 (5%) x £1 (stake) = £173.80 (margin requirement).
Once you have identified a share you want to trade, simply obtain the required margin
percentage from our Rates page, multiply that by the price of the share and then
multiply the result by your desired stake. For example, if you have decided to trade
on Rio Tinto (the mining company), which carries a 5% margin requirement, and the
current price is £34.76 (3,476 pence) and you wish to trade £1 per point then your
margin would be 3,476 (share price) x 0.05 (5%) x £1 (stake) = £173.80 (margin requirement)
Other financial products are margined using fixed notional requirements. This makes
it easier for the client to know how much margin is required to deposit as it does
not vary as the price of the instrument changes. For example, the UK 100 requires
only a £40 margin deposit for each £1 stake.
Where can I find margin requirements for each market?
Margin requirements for each market we offer can be found by either clicking on
the orange square information logo which is located next to the instrument you’ve
chosen. Alternatively, you can refer to our Market Information Sheet on our website
which can be found under Knowledge Centre.
Costs, Charges and Adjustments
What are rolling charges?
Margin trading means that you only deposit a fraction of the total value of any
position that you open and you are therefore borrowing the remainder of the total
consideration from us. In return, we calculate the interest for that period and
post it to your account each day that the position remains open. Therefore, each
time that you hold a long position overnight, you may incur a small rolling charge.
This charge reflects the fact that you are trading on margin.
Charges also exist on Daily Rolling Futures products and this is in respect of the
administration required to maintain a position which would normally have a limited
term, an expiry date, in this case one day. By offering you the chance to keep the
position open for longer than the term, we add a charge to your account.
Do I receive dividends?
Dividend adjustments are credited to long positions and debited from short positions
held at the close of business the day before the ex-dividend date. If you are long
you will receive 80% of the dividend, if you are short you will be debited 100%
of the dividend. Payment is credited/debited to your account on the ex-dividend
date. Dividend adjustments apply to equity and index markets. The morning after
a share goes ex-dividend the price of the share will drop by approximately the amount
of the dividend, so in effect, there is an immediate ‘nil-sum-gain’ for this action.
Payments and Withdrawals
How can I fund my account?
You can fund your account by debit/credit card, bank transfer or cheque. This can
be done by clicking on the Banking link within the trading platform or by phone
on +44 (0)207 398 5245. We accept Visa, Visa Debit, Visa Delta, Visa Electron, MasterCard,
Maestro and Solo.
How do I withdraw my money?
Withdrawals must be requested via email to
enquiries@twowayspreads.com or via telephone with Client Services on +44(0)207
099 1138.
What are your withdrawal or payment charges?
There is a 2% Charge for credit cards but no charge debit cards. If you are withdrawing
by bank transfer there is no charge for Bacs payments, but you will be subject to
a £15 charge should you require a Chaps payment. For payments over £5000 this charge
is waived.
How do I add/edit payments details?
You can add or amend card details online by depositing funds. Alternatively you
can call on +44 (0)207 398 5245 to add a card. If you would like to change your
bank details you will need to send a copy of a bank statement confirming your name,
address and account details.
Account Types
What are the differences between the 3 accounts?
The Active Account is out standard account, with spreads from 1 point on
out most popular index and forex markets.
The Diamond Account is available by invitation to customers that initially
deposit £50,000 or more. You will qualify for spreads from 0.5 points, interest on
your funds and advanced trading indicators.
Opening an Account
Opening an Account
Documentation is not always required as we conduct a credit check. If we are unable
to identify you we will require more documentation. These consist of a copy of your
passport and utility bill/bank statement for proof of name and address – these will
need to be certified if you reside overseas.
What do you mean by Certified?
To certify your documents, the documents need to be checked by a professionally
qualified person, this can be a teacher, police officer, doctor, lawyer, a civil
servant etc. This person must live in the UK and have known you personally for at
least two years and must not be a relative.
Can I open an account over the phone?
No, All applications must be applied for online, alternatively you can ask for a
paper application but this will take longer and you will need to send copies of
your supporting documentation.
What is the minimum initial deposit?
We have 2 different types of accounts which all require a different initial deposit.
Active Account: £500
Diamond Account: £5000
How can I close my account?
To close your account you will need to send a signed letter to Twowayspreads, 2nd
Floor, 3 Minster Court, London, EC3R 7DD. Please note if you wish to withdraw all
your funds you do not need to close the account in order to do this.
Is it possible to have more than one account?
In general, our preference is one account per client. Please contact the desk if
you would like to discuss this.
Do I get a ‘contract note’?
You receive a contract note via email for each trade you make whether you trade
online or by telephone.
Will I receive a statement?
You receive a weekly statement of account but can always view your trade history
once you have logged into your account.
How do I change my personal details?
To change your personal details you will need to email the client services team
at enquries@twowayspreads.com.
To change your personal details you will need to email the client services team
at enquries@twowayspreads.com.
Yes, you can nominate a power of attorney on your account but you will need to fill
in the necessary forms which you can obtain through calling the client services
team.
What are the contact numbers for various Twowayspreads departments?
New Accounts & Customer Services: +44 (0)207 099 1138
Trading: +44 (0)207 398 5245