IG Markets CFDs — Shares

Share CFDs provide exposure to changes in share prices but cannot result in delivery of actual shares by or to the client.

*'Major' shares are constituents of the headline indices of a country or region

Limited Risk transactions are available on certain shares at our discretion.

The limited risk premium is charged only when the guaranteed stop is triggered.

If you have an open Limited Risk share CFD position where the underlying share is subject to a rights issue or open offer and the subscription price is

(a) in or at the money at the closing price of the underlying share on the last trading day for that share immediately before the ex-date, we will treat the rights issue or open offer as being successful and accordingly increase the size of your CFD position to reflect the effect of the rights issue or open offer or
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(b) out of the money at the closing price of the underlying share on the last trading day for that share immediately before the ex-date, we will treat the rights issue or open offer as not being successful and accordingly leave your CFD position unchanged. This treatment will apply regardless of whether a rights issue or open offer becomes successful after being out of the money at the closing price of the underlying share on the last trading day for that share immediately before the ex-date or is not successful after being in or at the money at the closing price of the underlying share on the last trading day for that share immediately before the ex-date. Importantly, in both situations, we will alter the level of your stop such that the maximum amount you are risking under this open share CFD position remains the same before and after any adjustment is made for the rights issue or open offer.

For CFDs, a cash adjustment may be made to the client's account to reflect the effect of a bonus share issue, scrip or rights issue affecting the underlying share. For Share CFDs in a company which is under offer in a takeover situation, IG may not be able to communicate any wish to subscribe to the takeover offer (i.e. 'assent stock').

The Margin Percentage for any particular CFD is calculated as a percentage of the current valuation of the transaction.

The minimum margin factor for CFDs on all shares is 10% of the share price.

You may access the latest margin requirements from product page > Margin requirements.

The Margin amount for a guaranteed stop CFD transaction is equal to the amount which would be lost if the stop were triggered plus an additional 10% added to the margin amount.

We reserve the right to alter the Margin Percentage at any time.

Subject to risk reviews, the margin rates may differ for individual clients.

For some US shares, we offer extended trading hours from 04.00 to 20.00 (New York time) on Monday to Thursday and 04.00 to 17.00 (New York time) on Friday.

For CFDs on individual shares, adjustments to reflect the effect of interest and dividends are calculated daily and posted to the client's account daily.

a) Daily interest adjustment

A daily interest adjustment is calculated, as follows, for any position that is kept open through the official close of business:

D = n x C x i / 365

Where:

Note: The formula uses a 365-day divisor for Singapore shares and a 360-day divisor for shares in other markets.

The applicable annual interest rate is based on prevailing interest rates and our funding adjustment, usually 3% per annum. Interest on long positions is debited from a client's account; on short positions, there may be a credit or a debit.

b) Dividend adjustment

A dividend adjustment is applied when a share passes its ex-dividend date (including the ex-date of any special dividend) in the underlying stock market and is usually adjusted on client's account before market opens on the ex-dividend date.

In the case of long positions, the dividend adjustment is credited to the client's account. In the case of short positions, the dividend adjustment is debited from the client's account. In the case of Singapore shares, the dividend adjustment is equal to the amount of the net dividend. The dividend adjustment for shares in other markets varies depending on local tax arrangements; please ask our dealers for current details.

For CFDs, a cash adjustment may be made to the client's account to reflect the effect of a bonus share issue, scrip or rights issue affecting the underlying share.

Where you open a short share CFD position, you will incur a borrow charge. The borrow charge will be accounted for in a daily cash adjustment applied to the account. The charge varies according to the share, is notified to us by our brokers or agents and includes a 0.5% administration fee.

The borrow charge, and the ability to hold a short position, can be changed at short notice. To determine whether a borrow charge applies and if so, what the charge is, call our dealers in advance of trading.

When you trade in a currency other than your base currency, margin requirements and any profit or loss will be booked to your account in that currency. As a default, we will automatically convert any profit or loss you realise on closing a position to your base currency, including a charge of no more than 0.5% of the current spot rate.

The dividend adjustment for shares in other markets varies depending on local tax arrangements; please ask our dealers for current details.