Initial Margin (in currency of underlying exchange) = (Quantity x Share Price) x 5%

Index and Sector Positions:

Initial Margin (in currency of underlying exchange) = (Number of contracts x level) x 1%

Example:

  • You buy 2000 contracts of Vodafone @ 140.25. This provides a notional position of 2000 x 140.25 = £2,805. Vodafone is margined at 5% so you would need at least 140.25 initial margin to open this position.
  • If Vodafone's price goes down to 138, the margin requirement would then move down proportionally to 2000 x 138 = £2,760, where 5% of this contract value would now become 138 which is required to hold this position.

Initial Margin = (Stake x Share Price) x 5%
Index, Treasury, Commodity, Forex, Sector and Bullion Bets:

Initial Margin = Stake x NTR

Example: (Share Bet)

You buy £20 per point of the Vodafone Rolling Cash bet @ 140.25. This provides a notional position of £20 x 140.25 points (£2,805). Vodafone is margined at 5% so you would need at least £140.25 Initial Margin to open this position.

Example: (NTR Margined Bet)

The UK100 Index cash bet has an NTR of 50. Therefore for every £1 worth of bet you place in the UK100, this is multiplied by the NTR for the Initial Margin requirement. A bet to Sell £5 UK100 rolling cash therefore has an NTR deposit requirement of £250, (£5 x 50 NTR).