CFDs Helpdesk

The most efficient way to monitor your account is using the Client Position Keeping window within Marketmaker®. This enables you to monitor your trading positions, your daily profit and loss and also your cash positions. It is updated in real-time with live market prices. To access this function of the software, click on 'Trading' from the top menu and select 'Client Position Keeping'

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Initial margin requirements for CFD positions are a percentage of the total contract value. The majority of share positions are margined at 5% and all index and sector positions are margined at 1%.

Share Positions

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%

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Financing is charged or paid on positions that are carried or held overnight. On short positions you will be credited, whereas on long positions you will be debited.

The financing amount represents one night's cost of borrowing the total value of your contract

The amount is calculated using the overnight rate for the relevant currency +2.5 % for long positions and -2.5% for Short positions.

The rates we use for UK, US and EU positions are shown below

• UK Positions: Financing amount = {(Total Contract Value) x (LIBOR +/- 2.5%)} / 360 (LIBOR = London Inter-Bank Offered Rate)
• US Positions: Financing amount = {(Total Contract Value) x (FFER +/- 2.5%)} / 360 (FFER = Federal Funds Effective Rate)
• EU Positions: Financing amount = {(Total Contract Value) x (EONIA +/- 2.5%)} / 360 (EONIA = European Overnight Index Average)

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Deposit Interest is paid on free equity balances over 15,000 USD (or currency equivalent). It is paid at the relevant currency's applicable Base Rate less 2%. Deficit ledger balances are charged at relevant currency's applicable Base Rate plus 2%.

All amounts are calculated daily and applied to your account once a month.

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Margin is the deposit required to maintain or open a position. At the time of each trade, the client will require funds on the account at least equivalent to the total margin requirement. It is therefore the clients responsibility from the time of the transaction and throughout the term of the position to maintain funds on the account at least equivalent to the total margin requirement. If market movements cause a situation to occur whereby there are insufficient funds on your account to cover your margin requirement then CMC Markets will endeavour to send you margin call emails. However the responsibility ultimately rests with the client and if further market movements occur and you are significantly overtrading CMC Markets reserve the right to close out (Liquidate) your position(s). If this occurs you will be sent an email Liquidation Notice informing you of what has happened and the resultant status of your account.

To hold any positions on your account you require a minimum balance of US $200 (or currency equivalent). This is regardless of margin requirements of any positions. If your account balance falls below this threshold then CMC Markets reserve the right to close all positions on your account. If the level is reached without being on margin call then no margin call email will be sent.

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We do not guarantee execution of any Stop order(s) at the price the order is set unless it is a Guaranteed Stop Order (GSO). The placing of a stop indicates the level at which you wish to execute the order. Once this level has been reached or breached and the volume of your order has traded in the market, we will fill your order at your requested price or the next available price in the market (which may or may not be the price at which you placed the order).

For further information on GSO's please contact the Dealing Desk.

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• They can not be used to open a position
• A Guaranteed Stop Order can be placed on most instruments quoted by the CFD desk.
• It is important to note that the acceptance, amendment or cancellation of a GSO is at the sole discretion of CMC.
• A GSO can be treated similar to a normal Stop Order in that it can be used to close or reduce a position.
• Please note a GSO cannot be used to open or reverse a position.
• There are conditions to this type of Order, as there is a premium charge when placing the Order.
• Please note a Guaranteed Stop Order can only be placed once the stock is open and trading.
• A GSO can not be placed out of hours, within half an hour after the market opens or an hour before the market closes.
• If you would like to amend a Guaranteed Stop Order, such as the Price or Amount, you will have to cancel the existing GSO and place a new GSO, therefore encountering a new Premium.
• All Guaranteed Stop Orders are accepted at the dealer's discretion, which may mean they will not always be available and can only be placed via the telephone.

Guaranteed Stop Order Premiums have changed from a sliding scale of pips to a fixed percentage, these conditions and premiums are shown below:

Intstrument Type	Premium	Minimum Distance
Shares*	0.3%	5%
Sectors	0.2%	1%
Indices	0.2%	1%

* German Share CFDs outside of the DAX30 will have a premium of 0.6%

Example

BLT(UK) is trading at 918/920

Minimum Price for a Buy GSO

Minimum Price	= Price x Minimum Placement Distance
	=920 x 5%
	=966

Placing a GSO for 1000 BLT(UK) at 966

Cost fo this trade	= GSO Price x Number of CFDs x Premium
	=966 x 1000 x 0.3%
	=28.98

For further information on GSO's please contact the Dealing Desk.

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