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Definitions
What is a CFD?
A CFD offers you all the benefits of trading Shares without having to physically own them. Simply put, it is a contract that mirrors the performance of an underlying instrument. It is traded on margin, and just like physical Shares your profit or loss is determined by the difference between the price you 'buy at' and the price you 'sell at'. CFD Trading Example
What is margin trading?
Margin trading allows you to free up your capital by placing only a small percentage of the value of trade in your account. Profit and loss is credited and debited to your margin deposit as the market moves. Margins are typically 10% or less on Share CFDs, 3% on Commodity CFDs and 1% on Index, Sector, FX and Treasury CFDs. More about Margin
Costs
What charges are involved in trading CFDs?
RBS Spread Trading charge a minimum of £20 commission for each CFD traded. However, for FX, we do not charge any commission. Also, financing on equity positions held overnight is charged, and this may be paid or received dependant upon the position. All charges are contained within our rates schedule click here.
How and when is financing charged, and how is it calculated?
If you carry a CFD Share position overnight, it incurs a financing cost. Finance is calculated on 100% of the value of the equivalent position. It is calculated on a daily basis, at market price. If you are long, you'll have to pay interest to RBS Spread Trading; if you are short, you may receive interest from RBS Spread Trading. Financing on commodity and treasury CFDs is factored into the futures' price and therefore no overnight rates will apply. Financing is charged on any equity positions held overnight (positions open at 10pm London time).
Trading Equity CFDs
What commission is charged on Equity CFD products?
Commission of 0.20% of the trade value is charged, with a minimum charge of £20 per trade.
What is the minimum deal size?
The minimum deal size is one CFD. This is the equivalent of one Share.
Can I trade over the telephone?
Yes, customers can phone our dealers directly to place any trades.
Why are some trades denominated in different currencies?
Trades placed on US, European or Asian markets are denominated in the currency used by the exchange. Your profit/loss will be reported in the currency of your choice and different currency ledgers are created on your account. You can convert these ledgers into your reporting currency by contacting our Helpdesk.
What is the life of a CFD trade?
A CFD is an open-ended contract. If you have not closed your position by the end of the trading day, then the position is rolled into the next day. At this point, financing is paid or received. Provided that you maintain enough available margin, your position is maintained indefinitely.
I am a US citizen - can I trade CFDs?
We are unable to offer CFDs to US residents. If you are resident outside of the US, please contact us for more information.
I trade more than one financial instrument from the same account?
Yes, you can also trade commodities, treasuries and foreign exchange from your CFD account.
Can I receive dividends with CFDs?
A CFD trader does not physically own the Share and thus does not receive the actual dividend, however she/he can take part in corporate actions and the equivalent of any dividend will be credited (for a long position) or debited (for a short position) to their account. As the CFD trader does not own the share itself, they are not entitled to any voting rights.
How can I profit using CFDs in a falling market?
A customer can short sell Share and Index CFDs. This means that the trader can sell a CFD as an opening position. This is done by the customer effectively buying a contract between themselves and RBS Spread Trading, based upon the price movement of a Share. Neither party physically owns the Share so either can agree to buy or sell.
Trading Commodity CFDs
What Commission is charged on Commodity CFD products?
There is a flat fee of £20 per trade.
What Commission is charged on Commodity CFD products?
There is a flat fee of £20 per trade.
Do I incur financing on Commodity CFD products?
No. The position is rolled upon expiry and the price you pay will include financing in the contract value.
What is the margin level on Commodity CFDs?
RBS Spread Trading's margin rates on Commodity CFDs are as little as 3%. Please see our rate schedule for individual rates.
How do I calculate the margin on Commodity CFD products?
As Commodity and Treasury CFDs deal on differing point increments ranging from 0.01 to 1.0, margin calculations may vary. Your margin requirement can be calculated as follows:
For example:
You buy 10 USCRUDE DEC04 CFDs @USD$50
Your margin can be calculated as follows:
[(10 x 50) / 0.01] x 3% = USD$1500
What happens to my Good Til Cancelled (GTC) orders on expiry of the commodity CFD contract?
GTC orders placed on Treasury or Commodity CFDs are automatically cancelled at 10pm (London time) on the RBS Spread Trading expiry date for the relevant CFD contract.
Trading Treasury CFDs
What commission is charged on Treasury CFD products?
There is a flat fee of £20 per trade.
Do I incur financing on Treasury CFD products?
No. The position is rolled upon expiry and the price you pay will include financing in the contract value.
What are the spreads for Treasury CFDs?
All European and UK short sterling spreads are 3 pips, with the exception of long term US bills and Australian bonds. The T-Bond, 5 & 10 year T-Note have a spread of 6. Australian bonds and UK GILT have a spread of 4.
What happens to my stops and limits on expiry?
All pending orders are automatically cancelled by the dealing software at 7pm (London time) on the day of expiry.
Trading FX
What commission is charged on FX products?
There is no fee for these trades, there is a competitively priced spread for FX products.
What is a spot FX?
A spot FX is a CFD traded at the current market price.
Opening a CFD Account
How do I open an account?
To open an account online please click here, or contact one of our sales team on freephone 0845 353 0000 or 0203 003 2502.
Who do I deal with at RBS Spread Trading?
RBS Spread Trading have a number of dealers trading on the Internet and the telephone. When you open your account you will be provided with a log in for the Marketmaker® trading software and all relevant telephone numbers.
Trading with RBS Spread Trading
Is RBS Spread Trading regulated?
RBS Spread Trading is a trading name of CMC Markets UK Plc. For the purposes of you receiving services related to CFD trading, RBS Share Dealing Limited has introduced you to CMC Markets UK plc. CFD accounts are opened with CMC Markets UK Plc which is authorised and regulated by the Financial Service Authority.
What are the benefits of trading CFDs?
Customers benefit from margin trading, reduced trading costs (no Stamp Duty), and with RBS Spread Trading, quick execution and a 24 hour online trading service.
What kind of instruments can be traded as CFDs?
Individual Shares, Indices, Commodities, Treasuries, Sectors and Currencies. RBS Spread Trading offers these instruments in 18 different markets around the world.
Is RBS Spread Trading a market maker or an online broker?
CMC Markets UK Plc (who your account is held with) is a market maker, not a broker, and acts as a principal, not as an agent.
Is the price I see on RBS Spread Trading the price I can trade at?
Yes. The prices published are real-time and the service is price driven. Customers can execute trades and receive confirmation within seconds. The prices quoted can be dealt on at any time, at the click of a mouse. However, re-quotes may occur during large market movements or if share availability is exceeded by a single order or multiple customer orders.
Does RBS Spread Trading give trading advice?
No. RBS Spread Trading only provides an execution only service. We shall not advise or exercise judgement on your behalf as to the suitability of bets. Through RBS Spread Trading's Marketmaker® trading software, traders can access world-leading research and analysis from Reuters Research, advanced charting and analytic tools and real-time news from Dow Jones.
What should I do if I have a complaint?
If you have reason to complain, then it is important that you tell us as soon as possible. Please contact a member of our helpdesk team. Complaints can usually be resolved at this early stage.
If your complaint is not resolved to your satisfaction in the first instance, we will refer the matter to our Compliance Department, where they will conduct an investigation. A final response will be issued from our Compliance Department.
If you are still not happy with our final response you may to refer your complaint to the Financial Ombudsman Service. We will confirm in writing what your next steps are, if this applies to your complaint.
View RBS Spread Trading's complaints handling procedure
Order Types
What is an if-done order?
An if-done order, also known as a contingent order, is linked to an existing pending order. To place an if-done order you would first place a limit or stop order, usually to open a position. The if-done order will lie dormant until your initial stop or limit order has been filled. At this point it will come into existence and show as 'pending', awaiting execution in your order blotter.
What is a one cancels other (OCO) Order?
An OCO order is an order where one order cancels the other order and commonly consists of a stop-loss and limit order placed on either side of the current prevailing market price. An OCO order is generally used to close an open or existing position. For example: An OCO would be used with an existing long position where a stop-loss order would be placed below the market to minimise the loss on a trade, and a limit order would be placed above the market to take profit. When one order is executed, the other is automatically cancelled.
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