| TERMINOLOGY
For full details of the terminology that we use,
please click here to see
our Glossary. Alternatively, we have explained some
frequently used terms below:
What is margin?
Margin is the amount of money you must have in your
account to satisfy E*TRADE Spread Betting that you
are able to honour your debt should your bet lose
money. The amount of margin required can be calculated
simply by using our Product Information sheets, which
you can access here.
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What is the Min IMR?
The Min IMR refers to the Minimum
Initial Margin Requirement. It is a way of calculating
the minimum funds required to open a new position.
If the Min IMR on a market is 50 and you wished to
make a bet £5/point, you would require a minimum
of £250 in your account to open a new position.
We will then generate a stop-loss that reflects 80%
of the funds available on your account or 80% of the
Max CGSL, (see details below). You can adjust/amend
your stop-loss to whatever level you desire (subject
to the funds on your account). Every product has a
minimum stop level that limits how close you may place
any stop.
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What is the Max CGSL?
The Max CGSL (Computer Generated Stop Level). This
is the maximum figure used to automatically
allocate a stop-loss on newly opened positions. If
you have sufficient funds to cover the CGSL on deposit,
the Trading System will assign a stop at a point 80%
of the funds on your account, up to the CGSL. Otherwise,
the system will allocate a stop-loss calculated as
80% of the funds available in your account.
For example, if you have £2000 in your account
and you trade the Daily FTSE at £10 per point,
the system will automatically allocate a stop-loss
of 100 points (because the Max CGSL for Daily FTSE
is 125 and 80% of 125 is 100). The maximum risk on
a £10 bet would therefore be £1000, even
if you have £2000 on your account. You can always
amend your stop-loss (move it further away, or bring
it closer) assuming you have sufficient funds on your
account.
Please note that we hold an additional 20% of your
funds to allow for slippage or a market gap. We do
not offer guaranteed stops and therefore you could
lose more than your initial deposit should a market
gap through your stop level due to volatile markets
or because of movements in the underlying markets
during the hours when E*TRADE Spread Betting is closed
and does not subsequently offer a quote. If you require
more information, please contact us.
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What is the “Net Change” figure
displayed on your website?
This figure is based on our spread bet quotes and
not the underlying market value. It shows the number
of points that our quote for that product has moved
since the close of business the previous day.
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