Margins Explained
We offer competitive margin rates across our range of markets. You need only put up a fraction of your full contract size as initial margin, when trading leveraged or ‘geared’ products like CFDs.
Margin Rates
In accordance with MAS regulations, we provide clients with CFDs at the following margin rates:
- Forex: from 2% on currency pairs such as EUR/USD
- Shares: from 10% on shares from Singapore and overseas
- Indices: from 5% on indices such as Singapore Blue Chip
- Commodities: from 20% on commodities such as gold
Guaranteed Stops
Attaching a guaranteed stop limits your risk, as you will never lose more than your initial margin.
Guaranteed stops can also serve to manage your margin requirements. The margin requirement for Limited Risk trades – those with Guaranteed Stops – is equal to the value at risk if the Guaranteed Stop is triggered, plus 10% to cover any holding costs, for example funding, dividend or interest requirements.
Non-guaranteed stops
We also provide non-guaranteed stops, including trailing stops, and limit orders, free of charge. These offer less protection than guaranteed stops.
A non-guaranteed stop will close your position should a market reach your stop level, or potentially at a worse level if the market were to move very quickly, or ‘gap’. Non-guaranteed stops can serve to reduce your deposit requirement, though by a lesser extent than guaranteed stop.
Tiered margining
Large positions may require a higher margin, as it is more difficult to trade out of these positions quickly. For such positions, your initial margin will be determined using a table of four incremental tiers. This system allows us to provide low margins on several thousand shares from across the world’s major stock exchanges.
The process is outlined more fully on our Tiered Margining page.
CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial investment, so please ensure that you fully understand the risks involved.