Trading Quarterly Individual Equities
Tick Factor = the price increment representing 1 whole trading unit by which P&L and both initial and variation margin is calculated. The Notional Value of the trade is Price*Trade Size.
The tick size for US shares is 0.01 (1 cent)
Please note that equity spreads are unlike the rest of our parent company CFD offering and can vary significantly, particularly at the start and end of a trading day.
Minimum/Maximum Trade Sizes
The values shown are indicative, maximum trade sizes will vary from equity to equity, according to underlying liquidity.
Restrictions may be applied to maximum bet sizes whether opening or closing.
The minimum stake for all shares is 1 CFD. A 1 CFD trade on a UK share traded in GBP or a US share traded in USD is equivalent in value to 100 shares.
Say our parent company, Apple share price is $481.15/481.75 (bid/offer). You think Apple shares will rise over the coming weeks and buy (go long) 10 CFDs of Apple based at our buy price of 481.75.
Sure enough, Apple shares rise in the market the following week and you decide to cash in on your profit by closing your CFD trade. Our current buy/sell price for Apple share CFDs is $483.25/483.85. You close your CFD position by selling 10 CFDs at $483.25.
Now remember, CFDs are an agreement between two parties to exchange the difference between the closing price of a contract and the opening price of a contract. The difference in value of trade from open to close will net you a profit or a loss.
In this case, the underlying market moved in the direction you had predicted. So your closing value is $483250 (10 x $483.25 x 100 shares), which is a marked increase from your opening value of $481750 (10 x $481.75 x 100 shares). The net result is a profit of $1500.
Let's now look at what would have happened if you were wrong and prices had moved against you.
If Apple's share prices had fallen, instead of rising as you had expected. Let's say Apple shares fell from your opening buy price of $481.75 to reach $479.95, a movement of $1.80 against the direction that you had predicted.
Your closing trade value would be $479950 (10 x $479.95 x 100 shares), which is a decrease from your opening value of $481750 (10 x $481.75 x 100 shares, thus netting you a loss of $1800.
Current rates of dividend adjustments are as follows for UK and US Shares:
Buy trades are credited with 85% of net dividend.
Sell trades are debited with 100% of net dividend.
You are long RBS shares, RBS announce a six monthly dividend of 2 pence per share, when the stock goes ex dividend there will be a cash adjustment debit to your account of 2 * stake.
You are short Google shares, Google announce a six monthly dividend of 20 cents per share, when the stock goes ex dividend there will be a cash adjustment credit to your account of 20 * stake * 85%.
We have already covered dividends above but there are other corporate actions that may affect the price of a single stock, these include stock splits, rights issues, mergers and acquisitions and spin offs. All of these can dramatically affect the share price and will be reflected accordingly on your account.
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