Finding the best spread betting margin rates can be a time consuming exercise. There is no one place to compare spread betting margins rates. The reason being is that margin rates are an integral part of how spread betting companies make money. They can change margin rates and any time. There are also different margin rates quoted for different markets and each spread betting company can calculate rates in different ways. This post will look at what a spread betting margin rate is, compare margin rates, and talk about the margin call.
Who knows the spread betting companies may decide to make this information easily available so that it can be collected a presented to those who want to compare margin rates. Rather than concentrating on margin rates alone, it’s probably better to weigh up the benefits of the different features on offer. Viz, ‘the spread’, commission rates, trading requirements, and customer service.
Again, depending on the market that interests you most the features available, and those that will give you optimal trading for your style will vary.
What is trading on margin?
Trading on margin is like having an open line of credit from the spread betting company. A little bit like a revolving credit facility. It enables you to trade with more money than you have in your account. The margin rate takes is calculated as a percentage of the liability on each trade. Trading with a margin rate of 10% would mean that you would only need £100 to trade up to a liability of £1000. This is one reason why spread betting on margin is such a good way to leverage or gear up your trading or investing portfolio.