Low Margins

One of the great advantages of spread betting over other forms of investment is the ability to use leverage. Leverage or �gearing� is the ability to establish a large exposure from a relatively small outlay. This gives spread betters freedom to trade multiple positions or larger positions from a smaller capital base.

Twowayspreads offers very low margin requirements on shares, indices, currencies, commodities, bonds and interest rates giving you excellent freedom and flexibility.

Initial Margin Requirements (IMR)
UK100: 40	EUR/USD: 80
Wall Street: 80	GBP/USD: 80
DAX: 40	AUD/USD: 80

On individual shares, we have IMRs from as low as 5%.

For specific margin information, look at our market information sheet or click on the information button within the online dealing platform.

Order Aware Margining

Our IMR can be reduced further on open positions by attaching a stop loss (link to stop loss order) to the position. By attaching a stop loss, you are essentially reducing the amount you can lose on the bet. Because of this, we are happy to reduce the amount of money required to maintain the open bet.

This is done on the following basis:

Margin Requirement is the lower of either:

1. The IMR (Please see the market information sheet for up to date margins)
2. Current Price � Stop Loss Price + 20% of the IMR.

Example:

You buy �1 per point of Wall Street Rolling Future at 9850 and immediately place a stop at 9830. The IMR for the market is 80 (So for each �1 staked, �80 is required as deposit). The Order Aware Margin is therefore calculated as:

(9850 � 9830) + (80 x 20%) = �36.

Without operating a stop loss order requirement would be �80. With a stop loss, the requirement is just �36. That�s a reduction of the IMR of 55%

Clearly, if you were trading �5 per point, the requirement would be �180 (�36 x �5).

Further Information:

You can try these strategies out on a free online demo trading account. If you then need assistance navigating your way around the online trading platform, use the online platform walkthrough or call the sales desk and speak to an expert.

Alternatively, if you are ready to start trading with our market leading margins requirements, apply for a spread betting account.

+44 (0)207 099 1138

Twowayspreads is a trading name of Worldspreads Ltd, a firm authorised and regulated by the Financial Services Authority. Registration No: 230730.

Risk Warning - A spread trade is a margined product; it is possible to lose more than your initial margin deposit or credit allocation as well as any variation margin that you may be required to deposit from time to time. Therefore you should only speculate with money that you can afford to lose. Spread trading may not be suitable for all customers; therefore please ensure that you fully understand the risk involved and if necessary seek independent advice prior to entering into such transactions. When spread trading with Twowayspreads you are merely trading on the outcome of a financial instrument and therefore do not take delivery of any underlying instrument, nor are you entitled to any dividends payable or any other benefits related to the same. Risk disclosure notice.

You should assume that Twowayspreads telephone lines are recorded (although this is not guaranteed) and shall remain the exclusive property of Twowayspreads, which constitutes as evidence of the instructions you have given and may be used for purposes by us, including as evidence in any dispute. You should keep a written timed and dated record of all dealings with Twowayspreads. Twowayspreads is bound by the Data Protection Act.

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