If you have any questions that we have
not covered, please call us on 0845 601 6208.
How do I place a Guaranteed Stop
Loss order?
In our Account you can only leave a guaranteed stop
at the time of opening a position by telephone with one of our
Customer Services Representatives. When you place the trade you
need to tell the Customer Service Representative that you want to
leave a guaranteed stop and tell them the price that you want it
left at. There will be a premium to pay when you place the trade
depending on the market.
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What is a Linked Stop Loss
order?
A Linked Stop Loss is a stop order that is put in place to
limit the risk of a market moving against a current open position.
The Linked Stop Loss is linked to an individual open position so
that if that open position is closed, either by an opposing trade
or order activation, then that order ceases to exist.
Example
You place a trade to Buy 10 UK 100 CFDs at 5350, and
you place a Linked Stop Loss against that position at
5300.
If that open position is closed by an opposing trade, e.g. a
sell of 10 UK 100 CFDs at 5320, then the stop loss will
automatically be cancelled.
If the market sell price falls to 5300 and the Stop Loss order
is executed then your position will be closed.
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What is a Linked Limit
order?
A Linked Limit is a Limit order that is linked to an open
position.
If that open position becomes closed for any reason then the
Linked Limit order will cease to exist.
Example
You place a trade to sell 10 Wall Street CFDs at 10680, and
you enter a Linked Stop Loss at
10700, and a Linked Limit at 10620.
If the position is closed before either of your orders are
triggered, then both the Linked Stop
Loss and Linked Limit will automatically be closed. If the
Linked Stop Loss is triggered, the
position will be closed and the Linked Stop Loss will
automatically be closed.
Similarly if the Linked Limit is triggered then the position
will be closed and the Linked Stop Loss subsequently
cancelled.
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What does trading as principal
mean?
In conventional share trading customers will deal through a
broker who places their trade with a range of market makers. The
stockbroker is acting as an agent, searching out the best price for
their customer. This is not the case with CFD trading. In this
instance you are dealing with the provider and are contracting
directly with them.
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What is Margin Requirement?
Margin Requirements is the deposit requirement in respect
of each open position on your account. When you place a trade you
must have enough funds to cover the Margin Requirements applicable
to that trade. You must maintain the Margin Requirement
deposit level above any profits/losses on your account, these are
sometimes referred to as variation margin.
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How do I calculate Margin Requirements?
Margin Requirements are usually calculated as either a
percentage of the position or a fixed factor multiplied by the
number of CFDs you may have bought/sold.
Example:
UK 100 CFD Margin Requirements = 5% of total position
value (Number of CFDs x Current Price).
Please make sure you are aware of the Margin Requirements
applicable before you open each trade, these can be found in the
Market Information Sheets, by calling the Customer Services Team on
0845 601 6208.
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Will my profitable positions
offset losses on my negative?
Yes, open profits or losses are both taken into account when
calculating margins.
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How do I calculate if I am on a margin
call?
Your margin is determined by the Total Position on your
account. If this figure is negative, the funds required to bring it
back to a positive figure is your margin call. This is calculated
by using the following formula.
Account Balance - Margin Requirements + Open Profits - Open
Losses = Total Position
If you are in any doubt, call our Customer Services Team on
0845 601 6208.
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How are margin calls made?
If your margin call exceeds £500 we will send you a letter to
advise of the position. If the margin call exceeds £1,000 we will
then attempt to contact you to request additional funds. The margin
call could be made by email, telephone or any other contact you
have specified and a letter will be sent at 3.30pm for each day you
are on margin call. When you discuss the margin call or any
open positions with us, we will value your positions at the
current price. If positions have moved in your favour we will only
require the margin which is then due, this can change with each
price movement.
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Who is responsible for monitoring my
margin?
It is your responsibility to monitor your positions and to
ensure you have sufficient funds in your account to cover them,
however we will attempt to assist in making you aware if funds are
required. We are not obliged to make a margin call but we will make
attempts to contact you. If you are in any doubt as to the position
of your account or if additional funds are required, please contact
our Customer Services Team on 0845 601 6208.
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What are the rules for payment of
margin?
Margin calls are due immediately, however customers are
normally given 3 working days to pay margin calls of under £10,000
following a position move against you. This timescale is
based upon the time your positions move onto margin call
regardless of contact with us. Margin calls of over £10,000 are
required in cleared funds on the same business day.
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Might I have to make more than
one margin payment in a day?
Yes. In highly volatile markets this might be necessary.
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What happens if I can’t pay my margin
call?
Always contact our Customer Services Team and ask to speak to
a member of the Margin Department on 0845 601 6208 if you believe
you will have difficulty meeting your margin call. If you are
unable to provide sufficient funds to meet your margin call then
you may have to close some or all of your positions in order to
bring you off margin. It may also be possible to reduce the margin
call by placing Stop Losses. In certain circumstances we may have
to compulsorily close all or part of your open positions, please
therefore ensure you maintain contact with us.
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How is the margin call different from the margin
letter?
A margin letter is generated automatically each day. It is not
always possible to contact all customers by phone, which is why we
send letters. In fast moving markets the amount of variation margin
required can change rapidly.
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Which should I pay, the margin
call or the margin letter?
If you receive both a margin call and a margin letter please
pay the amount specified during the call. You will receive a margin
letter for each day you have positions on margin.
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What if I don’t receive the margin
call?
We are not obliged to make a margin call and do so on a best
efforts basis. It is your responsibility to monitor your own
positions and ensure that you have sufficient available funds to
meet your margin requirements.
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Why do I pay a daily Financing
Fee?
When you open a long CFD position you in effect are borrowing
the total value of the trade. The Margin Requirement that you are
required to deposit in the account prior to trade being accepted
provides security to TD Waterhouse CFDs in the event that the
position moves against you. For example, if you open a long CFD
position for £10,000 you are required to deposit a Margin
Requirement of £1,000. The financing charge you pay is to cover the
cost of the £10,000 trade and the £1,000 is security for that
trade.
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Do I get charged commission for buys and
sells?
Yes. The opening and closing trade is effectively two separate
trades, and therefore you are charged commission for each
trade.
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Do I receive dividends the same way as
shares?
CFDs are subject to a dividend adjustment intended to
replicate the net dividend payment applicable to the ordinary
share. A dividend adjustment is credited to long positions and
debited from short positions held at the close of business on the
day before the ex-dividend date. Payment is credited or debited to
your account on the ex-dividend date.
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Can I amend Stop Loss orders when the market is
closed?
No. You are unable to amend existing orders out of market
hours. This is because your current orders may be used to establish
your margin requirements and as such we cannot allow them to be
amended when markets are closed.
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How do I find out what the Margin Requirement is on an
individual stock?
Full details of Margin Requirement and charges can be found in
the Market Information Sheets. If you are unsure of Margin
Requirement for a particular market/stock you should always call
the Customer Services Team before placing a trade to ensure you
have enough funds to trade.
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How do I make payments and withdrawals?
You can make Debit card payments by accessing your account
online.
At present you are unable to make withdrawals online. Please
call our Customer Services Team on 0845 601 6208 to request a
withdrawal.
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Can I amend / cancel
orders?
Yes, you can amend or cancel an active order by accessing your
account online.
Alternatively you can call the Customer Services Team on 0845
601 6208. Please note that you can amend or cancel a Limit Order
outside trading hours, but not Stop Loss orders.
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Are orders active when markets are
closed?
Orders are only monitored and executed during TD Waterhouse
CFDs trading hours (not necessarily underlying market trading
hours).
In the case where a market continues to trade outside of TD
Waterhouse CFDs hours we will execute any triggered orders at the
first available price in our opening hours which may be different
to the order level. However if the market has moved beyond the
trigger level and returned by the time that TD Waterhouse CFDs
re-opens, the order will not be executed.
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How do I change my
password?
If you have forgotten or wish to change your password you need
to call the Customer Services Team on 0845 601 6208.
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