I currently have a spread of 1 point on the DAX spot price of €1 during trading hours… but it’s been like this forever. German IG account.
Spreads now for DAX 1 € :
Germany : 1.0
France : 1.8
Switzerland : 1.4 or 1.8, depending on the contract (there are 2 different 1 € contracts now)
Netherlands is also 1€. Well, it was last week. I suppose that did not change.
Edit : Yes, it is still the same. Mind you, at this time (I don’t know about evenings or early mornings).
How big is the margin in the Netherlands ?
In Germany, it is 5%, in Switzerland 0.5 %.
ok, so I am located in austria, and what IG platform shows for me “today” for dax during main trading hours is:
spread 1.00 pt for 1EUR contract, and 1.40 pt for both 5EUR and 25EUR cfd contract.
first: this 1.00 for 1EUR contract shows since last week or so, before = after beginning of current desaster = it was showing 1.80, and before beginning of current desaster it was 1.40 for several year. last time it was 1.00 it was – I think – before the covid.
second: it was never (last 15 years or so) the case until currently that spread was different for 1/2/25EUR contracts.
can somebody explain it to me? please don’t.
… I meant 1/5/25EUR contracts. sorry for typing mistake.
anyway, either all these current differences of spread for same instrument / different contracts / different countries is part of the mess, or it is on purpose, and again – simple profit maximization, and not what IG explains as spread (being dependent on vola and liquidity).
for they don’t know what they’re doin…
at IG of course
I can understand that for a margin of 0.5 %, IG charges more spread because their risk is higher than with a margin of 5%.
You got me there on answering a question which is hard for me to answer because although I may be kicked out on margin call (IG), I don’t trade in these limits because it is the trading systems “arranging” for that. So if I coincidentally have 20 of them running at the same time, I will be kicked out, if also the instrument (mainly US tech 100) just dropped 5%. Long story short : I recall 3% for non-pros. Pro could be less than 1% (for IG this is asking – and getting).
You can check on the IG trading platform. Just enter 1 contract, stop loss = 1000 and see what the margin requirement is.
I can understand that for a margin of 0.5 %, IG charges more spread because their risk is higher than with a margin of 5%.
I don’t see it like that because their Margin Call system works quite well. Thus before you go under, they already kicked out your position (IB no different).
But
I think I read the other day that a Pro account *can* go under. I mean, IG just allows that. How this really works ? no clue. It would mean : no Margin Call applies and you just go under (and undoubtedly will be charged the main price for interest).
Well, when you saw some sudden price changes in Nasdaq during Trump’s tariff chaos, like 100 points within 5 seconds, this comes close to the 0.5% margin and they may not be able to close a position by margin call.
Umm …
Margin does not appear yet (not sure how to enforce is) but what I notice … see below. At a position size larger than 3, the Spread changes from 1.0 to 1.5 …
So Yes, I have read about that too, but I never really saw it (trades go via PRT for me).
Does this change perspectives ?
Select coop or verkoop (do not press “execute trade”) and it will show “vereiste marge”.
And you have spread = 1.5 there. Funny….
This is the situation in Switzerland for 100 contracts (yes !) of DAX 1 € :
Spread = 1.4, margin = 0.5 %.
Learning a lot here … 🙂
(which I should have known already)
DAX is 5 % margin.
But also see the table on spreads in the top. First screenshot.
This list is not there for US Tech 100 (spread is also 5%). Second screenshot.
