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CFD products are traded on margin. Margin is an efficient way to use your capital as instead of paying the full value of your position you are only required to pay a percentage deposit.
With RBS Spread Trading this is dependant upon the instrument you are trading and ranges from 1% - 10% of your total position value. The individual product trading examples include margin calculations to illustrate how this works.
However, losses will also be magnified so margin trading is not necessarily for everyone.
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