Simplifying unit risk calculations on spread betting and CFD stock index markets
From Tuesday 8th September 2015 the underlying unit risk for the daily and futures US Tech 100, US 500 and Russ 2k markets will move from 0.1 to 1.0 and Netherlands 25 will move from 0.01 to 1.0. This will mean you will now be trading to the whole number and not the decimal place. For example, a 1 tick move in the US Tech 100 is currently from 4205.0 to 4205.1. However, from 8th September 1 whole tick move will be from 4205.0 to 4206.0. This change will decrease the notional value of the trade by a multiple of 10; the minimum trade size will therefore increase by a multiple of 10. For example 0.5 is currently the minimum trade size for the US Tech, this will become 5.
New CFD contract details
From Tuesday 8th September they are changing the contract value of all CFD stock index markets. As a result of the contract values increasing you will be able to trade in fractions of a lot and the minimum sizes will be adjusted to reflect this.
These changes will not affect any open positions but please be aware that affected spread betting and CFD markets will move to close-only after this date. New markets using the simplified unit risk calculation or contract value will be created in the Capital Spreads trading platform and if you wish to open any new trades after this date, you will need to do so using these markets. Don’t forget to add the new markets to your watchlist if you are trading them.