From the 19 March 2014 our spread caps on US and Canada share forwards will be increasing.
There will be no change to our percentage spread rate but spread caps and roll spread caps will go up as follows:
There will be no change to our percentage spread rate but spread caps and roll spread caps will go up as follows:
Bet term | Old spread cap | New spread cap |
---|---|---|
Near quarter | 12.5 | 100 |
Far quarter | 13.5 | 116 |
Very far quarter | 16.5 | 132 |
We are keeping our DFB percentage spread rate and cap unchanged.
See full details of our spreads on US and Canada shares.
Before the increase in caps | After the increase in caps | |
---|---|---|
Underlying market/value | Apple Inc. 54,995 / 55,000 | |
Deal size | £1 | |
Spread rate | 0.35% | |
Spread amount (without cap) | Buy spread = 192.5 pts
Spread rate x underlying buy price
|
|
Spread (factoring in cap) | 12.5 (Spread amount > cap, so cap applies) |
100 (Spread amount > cap, so cap applies) |
Interest premium | Interest premium = 89.3 pts
(0.15% + 0.5%) x 55,000 x 90/360
|
|
Our near-quarter price | 55,072 / 55,102 (our quote on Apple is rounded to the nearest full point)
Buy price = underlying buy price + interest premium + spread
Sell price = underlying sell price + interest premium – spread
|
54,984 / 55,189
Buy price = underlying buy price + interest premium + spread
Sell price = underlying sell price + interest premium – spread
|
Costs | £102
|
£190
(Spread (capped at 100) + interest premium) x deal size
|
Before the increase in caps | After the increase in caps | |
---|---|---|
Roll method | A quarterly shares bet rolled over to the next quarter usually expires basis the last traded price of the relevant exchange plus or minus half the IG spread. No IG spread is charged on the opening of the new bet. There will be a fair value adjustment to the opening level to reflect an interest premium. | |
Open position size and direction | Long £5 | |
Roll spread rate | 0.35% | |
Roll spread cap on near-quarter | 12.5 | 100 |
Last traded price on the NASDAQ | 6700 |
|
Far-quarter interest premium | 11.00
|
|
Closing spread on near-quarter (roll spread cap not factored in) | 23.45
|
|
Closing spread on near-quarter (roll spread cap factored in) | 12.5
|
23.45
(Spread amount < cap, so % spread rate applies) |
Closing price on near-quarter | 6687.50
|
6676.55
(Last traded price on the NASDAQ Exchange – roll spread)
|
Opening price on far-quarter | 6711
|
|
Cost | £117.50
|
£172.25
(Opening price on far quarter – closing price on near quarter) x open position size
|