UK, IG Markets Reduces Margins on Indices

February 22, 2011Andy No Comments »

Following the recent cuts made to IG Markets’ forex margins, IG have now proceeded to reduce the margin requirements for sixteen stock indices:

The deposit factors reviews applies to all IG’s 24-hour stock index markets. A morning note from IG Markets read

‘The new Tier 1 deposit cuts include all the major indices, such as FTSE 100, Wall Street, Germany 30 and Japan 225 – in total all 16 of our out-of-hours markets have had their deposit factor reduced.’ ‘The deposit factor on the FTSE 100 has now been reduced from 40 to 30, while Wall Street has been cut from 80 to 60. The reductions cover both Daily and Futures markets’.

Index
(Standard Contract)
  Previous Margin Requirement
(per contract)*   
  New Margin Requirement
(per contract)*     
FTSE 100
400
300
Germany 30
1000
875
France 40
300
200
Italy 40
1250
575
Spain 35
1500
550
Hong Kong HS42
10,000
5750
Japan 225
500
275
Sweden 30
1000
600
EU Stocks 50
300
150
Portugal 20
755
80
Singapore Blue Chip
2400
400
Australia 200
1000
625
Wall Street
800
600
US SPX 500
2000
1500
US Tech 100
1500 1200
South Africa 40
70,000
15,000

* Denominated in local currency. Margin requirements apply to Trader accounts only.

The low deposit margins form part of IG’s Tiered Deposit system which works out client deposit rates based on individual aggregate positions. The lowest deposit rates are available on Tier 1 of the system, which means the majority of positions will attract these new rates. The margins on Mini and Forward contracts have also been reduced across a wide range of indices.

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