Customers who hold open CFD positions could become liable to
pay additional margin. Margin is calculated using the formulae
detailed in clause 17.1 of our CFD Terms.
For your guidance, here are some worked examples using these
formulae.
Important points to note with regard to margin
calls
Please be aware that each individual position that you hold
will require Margin Requirement. CFD clients are required to
maintain the Margin Requirement over and above any marked
to market losses.
Please note that it is the responsibility of you the customer,
and not TD Waterhouse CFDs, to monitor your positions and make
margin payments to TD Waterhouse CFDs immediately upon margin
becoming due.
Margin calls may be made at any time in accordance with
section 17 of our Terms. It is therefore imperative that you
familiarise yourself with our CFD Terms and pay particular
attention to section 17 in its entirety.
Margin payments in excess of £10,000 will be required by
electronic methods for same day transfer. Please refer to
section 17 of our CFD Terms.
Please be aware that if margin payments are not received when
due, TD Waterhouse CFDs may without notice and in its absolute
discretion close any, or all, in whole, or in part, of your open
positions.
If you are going on holiday or will be away from your normal
contact details whilst running open positions, please notify us. It
is important that we are able to contact you in the event of any
margin calls. Failure to pay margin calls may result in positions
being closed.
Please note that TD Waterhouse CFDs normally make margin calls
upon customers by telephone. It is the policy of TD Waterhouse CFDs
not to disclose our company name or the nature of the call
(except that it is a personal call) when attempting to contact
customers by telephone, however we reserve the right to leave a
detailed message, including the company name, should we wish
to do so.
Example
Should Mr A open a long position of 20 UK 100 Stock Index
CFDs at 5185, on his account, he will be entering into a position
that carries a Margin Requirement of £5,185 (20 x 5185 x
5%)
(Please refer to the CFD Market Information sheets).
He would therefore be required to have a minimum of £5,185.00
lodged with TD Waterhouse CFDs to cover the Margin
Requirement.
Account holders are required to maintain the necessary Margin
Requirement over and above any marked to market losses.
Therefore,
should Mr A’s position deteriorate to the extent that, marked
to market at 5122, his open position was realising losses of
£1,260, Mr A would be called for a Margin of £1,197.00.
This is calculated as follows:
|
Customer Account Balance:
Less adverse marked to market:
Margin Requirement*:
Gives a total negative of:
Margin Required:
(*Margin Requirement = Size of trade (20) x Current
Price
(5122) x Margin Requirement Percentage (5.0%) )
|
£5,185.00
-£1,260
-£5,122
-£1,197.00
£1,197.00
£5,122
|
In view of the above, we politely suggest that a Standard
Account holder should lodge with us at least 25% more than
the Margin Requirement if they choose not to restrict their
losses to the amount of their deposit by use of Stop Losses.
Making payments to TD Waterhouse CFDs
Payments can be made to TD Waterhouse CFDs in the following
ways.
Cheque
Must be drawn on a UK clearing bank and made payable to TD
Waterhouse CFDs Limited.
Please ensure you write your TD Waterhouse CFDs Account number
on the reverse of the cheque.
Cheques will be credited to your account once they have
cleared, and can be used to cover margin calls below £10,000.
Telegraphic transfer
Bank: Barclays Bank plc (details on request). Please make sure
your name and account details appear on all transactions.
Debit Cards
You can make payments by Switch/Maestro and Delta.
Credit Cards
TD Waterhouse CFDs cannot take payments from
or make refunds to Visa or Mastercards or to third parties even
with the customers’ written permission.