IG Markets will offer a new type of commodity contract, called Leveraged Commodity Products (LCPs), from 30 January 2012.
These new LCPs will allow our clients to trade contracts on gold, silver, oil and other commodities with different margins than our commodities CFDs, which they replace.
What are LCPs?
LCPs are contracts traded over the counter on commodities under the Commodity Trading Act, regulated by International Enterprise Singapore (IE Singapore). Their risk profile is comparable to our current CFD products except that the margin requirement of LCPs differs from CFDs.
Exclusive to IG Markets, Singapore dollar-denominated contracts on popular commodities markets eliminate the risk associated with currency exposure.
See the table below for some examples of how the new margins are calculated.
Contract and dealing hours |
Value of one contract |
Normal spread |
Limited risk premium |
Margin requirement |
|---|---|---|---|---|
Gold |
SG$1 |
0.5 |
0.3 |
SG$17 |
Silver |
SG$1 |
3 |
2 |
SG$60 |
Light Crude Oil (US) |
SG$1 |
6 |
4 |
SG$150 |
Client Money Protection
All client monies will have the same protection with IG Markets’ LCPs as they do with our CFD products – 100% of client money is segregated and kept in Singapore, including running profits.
Please contact our Helpdesk should you have any questions in this respect.
