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Spread betting example

Initial Margin and Size of Bets

It should also be noted that, when financial spread betting, your "stake" is not your ultimate financial liability, as in a fixed odds bet, but it can be many times this amount because you are spread betting per point movement of the market in question.

GFT Global Markets allocates a degree of risk to each individual market, depending upon its perceived volatility, which is referred to as the Initial Margin (IM).

Maximum stakes can be calculated by dividing the available risk capital on your account by the applicable IM rate of the market in question. Therefore, the maximum size of your stake will ultimately depend on your account status. Of course, you may choose a stake of a lesser amount if you prefer.

Placing the Spread Bet

Once you have decided on your stake and have chosen to buy or sell, our trading platform will verify that you have the ability to place the desired spread bet. If so, you will then receive confirmation that the trade has been accepted.

Closing your Position

Each trade will have a specific date on which it will settle. However, you do not have to wait for the trade to expire in order to realise any profits or losses. You may settle, or "close," your trade at any time during our trading hours by simply requesting a current quote and then trading in the opposite direction of the initial trade at an equivalent stake.

For example, if your first trade was a sell trade, you would close it by placing an order to buy the equivalent stake at the current quote. Once the trade is closed, any funds due to or from you will be immediately credited or debited to your account.

*Services offered through Global Forex Trading.