What Is Spread Betting on ETFs?
Spread betting on ETFs allows UK residents to trade the price of a bundle of companies from the same sector.
An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. When the underlying index increases in value, the value of the ETF increases too. They allow you to balance the risk profile of an investment as each ETF includes an array of different companies within a particular sector. They are suitable to be traded long or short-term.
Trade an entire sector
Energy Energy
Select Sector SPDR Fund
Financial
Financial Select Sector SPDR Fund
Health Care
Health Care Select Sector SPDR Fund
Industrial
Industrial Select Sector SPDR Fund
Technology
Technology Select Sector SPDR Fund
Real Estate
iShares U.S
Real Estate ETF
Please find below the maximum leverages for retail customers under ESMA regulation
| Shares & ETFs | Max Leverage 1:5 | Margin 20% | Close-out Level 50% |
Please find below the maximum leverages for Professional customers
Spread Betting ETFs
| Symbol | Shares | Margin according to position (lots) | |||
| ACWI.US-SB | iShares MSCI ACWI ETF | 0-800 lots | 800-8,200 lots | >8,200 lots | |
| 15% | 20% | 25% | |||
| EEM.US-SB | iShares MSCI Emerging Markets ETF | 0-1,400 lots | 1,400-13,600 lots | 13,600-27,200 lots | >27,200 lots |
| 2% | 5% | 15% | 20% | ||
| EFA.US-SB | iShares MSCI EAFE ETF | 0-900 lots | 900-8,800 lots | 8,800-17,600 lots | >17,600 lots |
| 2% | 5% | 15% | 20% | ||
| EWJ.US-SB | iShares MSCI Japan ETF | 0-1,000 lots | 1,000-10,300 lots | 10,300-20,600 lots | >20,600 lots |
| 2% | 5% | 15% | 20% | ||
| HYG.US-SB | iShares iBoxx $ High Yield Corporate Bond ETF | 0-700 lots | 700-7,000 lots | 7,000-14,000 lots | >14,000 lots |
| 5% | 10% | 20% | 25% | ||
| IBB.US-SB | iShares Nasdaq Biotechnology ETF | 0-500 lots | 500-5,100 lots | 5,100-10,200 lots | >10,200 lots |
| 5% | 10% | 20% | 25% | ||
| IJR.US-SB | iShares Core S&P Small-Cap ETF | 0-700 lots | 700-6,900 lots | 6,900-13,700 lots | >13,700 lots |
| 5% | 10% | 20% | 25% | ||
| IYR.US-SB | iShares U.S. Real Estate ETF | 0-700 lots | 700-7,400 lots | 7,400-14,700 lots | >14,700 lots |
| 2% | 5% | 15% | 20% | ||
| MUB.US-SB | iShares National Muni Bond ETF | 0-600 lots | 600-5,500 lots | >5,500 lots | |
| 15% | 20% | 25% | |||
| TIP.US-SB | iShares TIPS Bond ETF | 0-500 lots | 500-5,400 lots | >5,400 lots | |
| 10% | 20% | 25% | |||
| XLE.US-SB | Energy Select Sector SPDR Fund | 0-800 lots | 800-8,000 lots | 8,000-16,000 lots | >16,000 lots |
| 2% | 5% | 15% | 20% | ||
| XLF.US-SB | Financial Select Sector SPDR Fund | 0-2,100 lots | 2,100-21,200 lots | 21,200-42,400 lots | >42,400 lots |
| 2% | 5% | 15% | 20% | ||
| XLI.US-SB | Industrial Select Sector SPDR Fund | 0-800 lots | 800-7,900 lots | 7,900-15,800 lots | >15,800 lots |
| 2% | 5% | 15% | 20% | ||
| XLK.US-SB | Technology Select Sector SPDR Fund | 0-800 lots | 800-8,100 lots | 8,100-16,300 lots | >16,300 lots |
| 2% | 5% | 15% | 20% | ||
| XLP.US-SB | Consumer Staples Select Sector SPDR Fund | 0-1,100 lots | 1,100-11,200 lots | 11,200-22,500 lots | >22,500 lots |
| 2% | 5% | 15% | 20% | ||
| XLU.US-SB | Utilities Select Sector SPDR Fund | 0-1,100 lots | 1,100-11,300 lots | 11,300-22,600 lots | >22,600 lots |
| 5% | 10% | 20% | 25% | ||
| XLV.US-SB | Health Care Select Sector SPDR Fund | 0-700 lots | 700-6,700 lots | 6,700-13,300 lots | >13,300 lots |
| 2% | 5% | 15% | 20% | ||
| XLY.US-SB | Consumer Discretionary Select Sector SPDR Fund | 0-500 lots | 500-5,300 lots | 5,300-10,600 lots | >10,600 lots |
| 2% | 5% | 15% | 20% | ||
| GDX.US-SB | VanEck Vectors Gold Miners ETF | 0-2,900 lots | 2,900-29,000 lots | 29,000-57,900 lots | >57,900 lots |
| 5% | 10% | 20% | 25% | ||
| VT.US-SB | Vanguard Total World Stock ETF | 0-800 lots | 800-7,900 lots | >7,900 lots | |
| 15% | 20% | 25% | |||
Close-out level for Professional account clients is set at 30%
Please find below the Used Margin thresholds for Professional customers with ActivTrader platform. If the used margin in client’s accounts exceeds the thresholds set below, the respective coefficient will be applied to the leverage for each of the trading instruments, for the part of the position exceeding the threshold itself.
| Used Margin GBP | Coefficient |
| 130k – 260k | 0.5 |
| >260k | 0.25 |
Example:
A client with Spread betting account and leverage 1:400 has Long position for 3050 lots EURUSD (at
price 1.2000).
Margin requirement for this position is 126 000 GBP
- 60 000 GBP for the first 2000 lots with 1:400 leverage
- 60 000 GBP for the next 1000 lots with 1:200 leverage
- 6 000 GBP for the final 50 lots with 1:100 leverage
The next trade Buy 100 lots EURUSD will consume 20 001 GBP margin
- 4 000 GBP for the first 33.33 lots – bringing the Used margin to 130 000 GBP
- 16 001 GBP for the next 66.67 lots – leverage 1:50 (coefficient 0.5 applied to 1:100 leverage)
A client can have positions in different instruments that again bring the used margin above the thresholds
specified.
A client with Spread betting account and leverage 1:400 has Long position for 2250 lots Ger30Sb1218
(at price 11000) and Short position in GOLD for 560 lots (at price 1250).
Total used margin is 127 500 GBP
- 27 500 GBP for Long position for the first 1000 lots in Ger30Sb1218 at 1:400 leverage
- 55 000 GBP for Long position for the next 1000 lots in Ger30Sb1218 at 1:200 leverage
- 27 500 GBP for Long position for the final 250 lots in Ger30Sb1218 at 1:100 leverage
- 17 500 GBP Short position in GOLD for 560 lots at 1:400 leverage
The next trade Buy 100 lots EURUSD (at price 1.20) will consume 3 500 GBP margin
- 2 500 GBP for the first 833 lots at leverage 1:400 – bringing the Used margin to 130 000 GBP
- 1 000 GBP for the next 16.67 lots – leverage 1:200 (coefficient 0.5 applied to 1:400 leverage)
If a client has more than 1 account, the Used margin thresholds are reduced proportionately to the number of
accounts. Thus a client with 2 accounts in EUR will have Used margin GBP threshold for each of the accounts reduced
by half.
ActivTrader Platform will display the exact margin requirement for each position that clients intend to open.
Please find below the maximum leverages for retail customers under ESMA regulation
| Shares & ETFs | Max Leverage 1:5 | Margin 20% | Close-out Level 50% |
| Code | Shares | Minimum Point Value | Tick Value | Margin 1 (*) | Margin 2 (*) | Can Go Short? |
| ACWI.US-sb | iShares MSCI ACWI ETF | 1 GBP | 0.001 GBP | 30% | 50% | Yes |
| EEM.US-sb | iShares MSCI Emerging Markets ETF | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| EFA.US-sb | iShares MSCI EAFE ETF | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| EWJ.US-sb | iShares MSCI Japan ETF | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| HYG.US-sb | iShares iBoxx $ High Yield Corporate Bond ETF | 1 GBP | 0.001 GBP | 10% | 30% | Yes |
| IBB.US-sb | iShares Nasdaq Biotechnology ETF | 1 GBP | 0.001 GBP | 10% | 30% | Yes |
| IJR.US-sb | iShares Core S&P Small-Cap ETF | 1 GBP | 0.001 GBP | 10% | 30% | Yes |
| IYR.US-sb | iShares U.S. Real Estate ETF | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| MUB.US-sb | iShares National Muni Bond ETF | 1 GBP | 0.001 GBP | 30% | 50% | No |
| TIP.US-sb | iShares TIPS Bond ETF | 1 GBP | 0.001 GBP | 20% | 40% | Yes |
| XLE.US-sb | Energy Select Sector SPDR Fund | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| XLF.US-sb | Financial Select Sector SPDR Fund | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| XLI.US-sb | Industrial Select Sector SPDR Fund | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| XLK.US-sb | Technology Select Sector SPDR Fund | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| XLP.US-sb | Consumer Staples Select Sector SPDR Fund | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| XLU.US-sb | Utilities Select Sector SPDR Fund | 1 GBP | 0.001 GBP | 10% | 30% | Yes |
| XLV.US-sb | Health Care Select Sector SPDR Fund | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| XLY.US-sb | Consumer Discretionary Select Sector SPDR Fund | 1 GBP | 0.001 GBP | 5% | 15% | Yes |
| GDX.US-sb | VanEck Vectors Gold Miners ETF | 1 GBP | 0.001 GBP | 10% | 30% | Yes |
| VT.US-sb | Vanguard Total World Stock ETF | 1 GBP | 0.001 GBP | 30% | 50% | Yes |
MetaTrader 5: A powerful platform for you
You can trade ETFs on a demo or real account, automate you strategies with Expert Advisors and try a complete set of pre-installed indicators and charts.
