Sectors CFD product details
We offer sectors from the UK and Australia, providing exposure to a basket of related stocks with a single trade.
- The margin factor is 10%, so you only have to put up 10% of the total exposure of the trade
- We charge no commission on sectors; all you pay is the dealing spread
- The dealing spread is normally 0.1% per side for all contracts on all sectors
- The minimum transaction size for sector CFDs is one contract
Trade standard and mini contracts on the following sectors:
UK
- Banks
- Food and Drug Retailers
- FTSE Mid 250
- General Retailers
- Household Goods and Home Construction
- Mining
- Oil and Gas Producers
- Pharmaceuticals and Biotechnology
- Real Estate Investment Trusts
- Techmark
Australian sectors
- Consumer Discretionary
- Energy
- Financials
- Healthcare
- Materials
- Industrial
- Consumer Staples
- Utilities
Notes
Our sectors are a special form of CFD that give you exposure to changes in the value of shares in specified sectors but cannot result in the delivery of any share or instrument by or to you.
1. The margin factor is 10%, so you only have to put up 10% of the total exposure of the trade.
2. The dealing spread is normally 0.1% per side for all contracts on all sectors. Spreads are subject to variation, especially in volatile market conditions.
3. For guaranteed stop bets a guaranteed stop premium is charged if your guaranteed stop is triggered. The potential premium is displayed on the deal ticket, and will form part of your margin when you attach the stop. Please note that premiums are subject to change, especially going into weekends and during volatile market conditions.
4. The minimum transaction size is one contract.
5. One standard contract is equivalent to £10 (per sector point) for UK sectors and $10 (per sector point) for Australian sectors. One mini contract is equivalent to £2 (per sector point) for UK sectors and $2 (per sector point) for Australian sectors.
6. UK sectors can be dealt from 8.15am to 4.30pm (London time). Australian sectors can be dealt from 10.10am to 4pm (Sydney time).
7. For sectors, adjustments to reflect the effect of interest and dividends are calculated and posted to your account daily. For dividends on sectors they are posted on the ex-dividend date.
i) Interest adjustments are calculated as follows:
D = n x L x C x i / A
Where:
D = daily interest adjustment
n = number of contracts
L = contract size
C = current sector price
i = applicable annual interest rate
A = annual divisor, which is 365 for UK sectors and 360 for Austalian sectors.
Interest in respect of long positions is debited from your account and interest in respect of short positions is credited to your account at rates which are agreed with you.
ii) A dividend adjustment is applied when a component share passes its ex-dividend date (including the ex-date of any special dividend) in the underlying stock market. In the case of long positions, the dividend adjustment is credited to your account. In the case of short positions, the dividend adjustment is debited from your account.
8. When you trade in a currency other than your base currency your profit or loss will be realised in that currency and will be booked to your account in that currency. As a default, we will automatically, and on a daily basis, convert any positive or negative balance on your account in a currency other than your base currency to your base currency. You may change this default at any time by calling us or via our trading platform.
