CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Spread Betting Forex

Please find below the maximum leverages for retail customers under ESMA regulation

Major FX pairs Max Leverage 1:30 Margin 3.33% Close-out Level 50%
Non-major FX pairs Max Leverage 1:20 Margin 5% Close-out Level 50%
Gold Max Leverage 1:20 Margin 5% Close-out Level 50%
Silver Max Leverage 1:10 Margin 10% Close-out Level 50%

Please find below the maximum leverages for Professional customers

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.

Spread Betting on FOREX with ActivTrades allows you to back your judgement on Forex market movements. You can speculate on the movement of over 50 currency pairs by simply ‘buying’ if you think the currency is going to strengthen and ‘selling’ if you think the currency is going to weaken.

ActivTrades offers clients the possibility to trade with a minimum stake of 10 pence per point with a minimum transaction size of 0.1 lot.
The table shows the lot size with a value of a pip when quoted in the normal 4-decimal-place configuration. A pip is the smallest incremental movement of a currency pair when quoted in the 4-decimal-place configuration. In a 5-decimal-place configuration, a tick is the smallest increment. One pip equals 10 ticks.

You can use both values to calculate the profit and loss on your bet.

Spread betting currency Profit and Loss calculation

1 Lot = 10,000 units; 1 Lot full pip value = £1

Buy 1 Lot EURUSD at 1.47235
Buy 10,000 units at 1.47235 = £14,723.5
Sell 1 Lot EURUSD at 1.47965
Sell 10,000 units at 1.47965 = £14,796.5
£14,796.5 – £14,723.5 = £73

In this case the trade was profitable £73. The same calculation can be made in pip terms:

1 Lot EURUSD full pip value = £1

Buy at rate 1.47235
Sell at rate 1.47965
1.47965 – 1.47235 = 73 pips = 73 full pips profit at £1 per full pip
= + £73

Spreads

ActivTrades offers competitive dealing spreads, starting from just 0.5 pips. Click here for the Forex spreads table.

Margin and Leverage

At ActivTrades, we offer currency spread betting with flexible leverage, which ranges between 1/1 and 1/400, giving traders the control of appropriate level of risk. Your margin requirement will be based on your leverage, which means that you will only have to put forward a small percentage of the total trade value from your own funds as initial margin. The leverage and margin conditions for spread betting Forex are the same as for the forex trading.

Example of a Leveraged Bet

You have £10,000 equity in your trading account and you anticipate the EUR will appreciate against the USD. To reflect this opinion you need to place a bet where you buy EUR against USD, the current EURUSD price is 1.32525. You decide to buy 1 lot with £1 per full pip at leverage of 1:400. By placing a spread bet at £1 per full pip when the price is 1.32525, the value of the trade would be £13,252.5 (the price 1.32525*lot size 10,000). The maximum permitted leverage for your account value is 1:400, or expressed as margin is 0.25%. The margin requirement for the trade is therefore £33.13 (13,252.5 /400).

Swaps

If you hold your position open overnight you will be charged a rollover cost. Rollovers, or SWAPS, are the interest rate calculations that determine the cost or reward of holding an open position overnight. View our SWAPS table here

Swap calculation:
Pip value x Swap rate (long or short)
Buy 1 lot AUDCAD , Swap rate for AUDCAD long is 0,58 pips
Swap charge: Pip value x Long swap = 1 x 0.58 = 0.58 GBP

Order Types

At ActivTrades, we offer a range of orders allowing the trader to take control over the risk, as they can be used to maximise your trading potential, as well as minimise the downside risks. There are several ways to place trade orders in the terminal. Click here to find out more.

  • All our transactions are structured like a CFD; therefore they are cash settled and do not result in the delivery of the underlying currencies or commodities.
  • Trading hours are nonstop from Sunday 23:00 CET until Friday 23:00 CET, except for Gold, Silver, Platinum and Palladium.
  • Gold, Silver, Platinum and Palladium sessions start at 00:00 CET until 23:00 CET from Monday to Friday.
  • The minimum transaction size is 0.01 contract (micro-lot). With mini and micro-lot trading, all conditions remain the same, including spreads.
  • To utilise trailing stops you must be logged into your MT4 platform.
  • The pair USD/CNH is not traded 24 hours trading hours are from 02:30 till 23:00 (Server Time)
  • The pair USD/RUB is not traded 24 hours trading hours are from 08:00 till 17:00 (Server Time)
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