General Information
About Financialspreadbetting.co.uk
Dealing
Market Information
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What are you dealing hours? 
Trading hours for each market we offer can be found by clicking on the information icon which is located next to the instrument you’ve chosen. Alternatively, you can refer to our Market Information Sheet on our website which can be found under Knowledge Centre.
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What are your spreads on instruments?
We offer fixed spreads but these vary according to the time of day and also the account type you choose. Specific details for market spreads can be found by clicking on the information icon which is located next to the instrument you’ve chosen. Alternatively, you can refer to our Market Information Sheet on our website which can be found under Knowledge Centre.
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Where can I find margin requirements for each market?
Margin requirements for each market we offer can be found by clicking on the information icon which is located next to the instrument you’ve chosen. Alternatively, you can refer to our Market Information Sheet on our website which can be found under Knowledge Centre.
Trading Platform
Bet Types
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What is the difference between the Daily Rolling Cash and Rolling Futures bet types?
When placing a new bet, you need to consider which type of bet that you wish to place on that market. WorldSpreads offer a range of bet options that are available to suit the desired duration of your trade. These range from only a few minutes, to a single day, to 3 months in length, and even one where there is no defined end date.
Daily Cash Bets - designed for the fixed-term trader and are settled at the end of the day.
Daily Rolling Cash Bets - these bets do not expire at the end of the day and are automatically ‘rolled over’ to the next trading day (subject to overnight financing charges) Prices of these will generally reflect the ‘spot’ price, that is commonly quoted in newspapers, on television etc.
Daily Rolling Future Bets - these bets do not expire at the end of the day and are automatically ‘rolled over’ to the next trading day (subject to overnight rolling charges). Prices of these will generally reflect the quote of the underlying futures market, with the cost-of-carry built in.
Quarterly Bets – these bets do expire on a set date up to three months in the future and do not incur financing (or rolling) costs – it is all built into the price, up front.
General Dealing
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Why do spreads sometimes widen or tighten?
On the underlying markets, there are no such things as a fixed spreads. Spreads vary according to liquidity and therefore when the markets are very active, with large volumes buyers and sellers the difference between the buy and sell price is driven tighter, and vice versa for when markets are quiet. This is especially evident on shares and therefore when you are spread-betting, the difference between the buy and sell prices will not always be a fixed difference – they are reflective of the underlying order books of each security, at the time you trade.
For indices and forex however, we have committed to a fixed spread in order to offer you more stability and certainty. You therefore can be more confident that getting out of a position will cost no more than it did to enter into. In order to be mutually fair to both parties, we do adjust our spreads to suit trading periods based on average market activity for that period, ie tighter in typically busy (liquid) periods and wider during quiet periods.
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Can I choose to close only part of a live position?
Yes you can. To partially close a position, you simply place an order in the opposite direction but for a reduced amount (stake).
You can fully close the any position, either by using the ‘close function in the “open bets” summary, or by placing a new, equal and opposite trade.
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Can I keep my positions open at the end of the day?
Yes you can. Daily Rolling bets automatically ‘roll-over’ at the end of the trading day. If you decide to roll any quarterly, monthly or daily cash contract, you will need to contact us shortly before our expiry time to leave a rollover instruction. For equities Financialspreadbetting.co.uk will close the existing trade spread-free (at the market price) and offer the subsequent quarter at half of our spread. For indices, commodities and forex markets, Financialspreadbetting.co.uk will close the trade at our mid-point and offer the subsequent quarter at the corresponding bid or offer level. On rollover of futures contracts, the existing trade is closed, realising any profits or losses incurred and a new position is subsequently opened.
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What is the maximum/minimum I amount I can stake per point?
The minimum new bet size is £1 per point. There is no explicit maximum however; it is dependent upon your available trading funds, the liquidity in the underlying instrument and at the dealer’s discretion.
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How do you calculate rollovers?
Adjustments are calculated on the basis of official interest rates, including a 2.5% margin haircut. Please note that this adjustment may be positive or negative. In particular, at times of low interest rates, the adjustment on a short position may be negative. For daily rolling futures positions, there is a rolling adjustment of one index point per day.
Example: Buying Shares
You buy Vodafone at 125p for £10 per point. The underlying value of your position is 125p x £10 = £1,250
Assuming LIBOR interest rate is 3%, and adding the 2.5% haircut = 5.5% pa. Divide by 365 days = 0.015% per day
If you multiply the daily rate by daily exposure i.e. 0.015% x £1,250 = £0.19 charge
Example: Selling Shares
You sell Vodafone at 124p for £10 per point. The underlying value of your position is 124p x £10 = £1,240
Assuming LIBOR interest rate is 3%, and subtracting the 2.5% haircut = 0.5% pa. Divide by 365 days = 0.0013% per day
If you multiply the daily rate by daily exposure i.e. 0.0013% x £1,240 = £0.016 receipt
The above process is applied in exactly the same way to rolling Cash indices and gold spot contracts.
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How do you calculate FX rollovers?
The principal behind FX roll-overs is that you receive the deposit interest of the currency you are long of and pay the borrowing cost of the currency you are short of.
If the interest rate of the currency you are long of is higher than that of the currency you are short of you will receive money.
If the interest rate of the currency you are long of is lower than that of the currency you are short of you will pay.
In the wholesale market this interest rate differential calculation is expressed as a points adjustment (positive or negative) relative to the currency spot rate.
Our adjustment is currently: Long IR - Short IR - 2.5%
This result may be positive or negative.
Examples: GBP/USD
Interest Rate GBP 3.20% and USD 3.35%Spot rate 1.5300
Per £1 long: (3.20 - 3.35 - 2.5) x 15300 / 365 / 100 = -1.11
Per £1 short: (3.35 - 3.20 - 2.5) x 15300 / 365 / 100 = -0.99
Pricing
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How are the Rolling Daily Cash Index prices calculated?
All major indices quoted have a futures market related to them. This future trades at a price which reflects the underlying market plus some adjustments. These adjustments are calculated from the theoretical value of dividends payable between today and the expiry of the future AND the cost of carry for the index over the same period. This adjustment is called the 'Fair Value'. Financialspreadbetting.co.uk links the Rolling Daily Cash quote to the relevant future concerned and offsets the quote by the current Fair Value. Therefore the Rolling Daily price is moved by the futures contract price and not vice versa. This is because the underlying cash price is a lagging market indicator which does not react in a timely manner to market-moving news.
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How are Quarterly Share prices calculated?
For UK shares we price our bid using the underlying market bid and the offer from the underlying market offer. Our spread is then added around the underlying market bid/offer to create 'our quote'. On a day-to-day basis the difference between our bid and the underlying market bid will remain the same as will the difference between the offer prices. If the underlying market bid/offer spread widens/narrows then our quote will widen/narrow with it. We derive future individual share prices (quarterly markets) by taking the underlying market price and adding the cost of carry from the trade date until the expiry date.
Order Types
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What types of orders do you offer?
Normal stop loss orders
Guaranteed stop loss orders
Trailing stop loss orders
Limit orders
One-Cancels-Other (OCO) Orders
If-done orders
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What’s the difference between a trade & an order?
A trade is when you want to place a trade at the current market levels, an order is a request to open or close a trade at a different level to the current market price.
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Can I put in a stop loss or limit order after I’ve placed my trade?
Yes, simply select the open bets tab, then select ‘add’, a window then appears containing prompts to place a stop loss/limit order against your current live position.
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What is the difference between ‘market’ and ‘our quote’?
‘Our Quote’ is an order based on our price, ie at the market price with our spread included. ‘At Market’ means your stop will be triggered first by the underlying market level with our spread added to it upon execution.
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What do you charge for Guaranteed Stop Losses?
Guaranteed stop loss charges are dependent on the contract you’ve chosen to trade. The charge for Guaranteed Stop Losses can be found on the Market Information Sheet (found in the Knowledge Centre part of our website) and the charges are detailed on the far right column of this document. Alternatively, phone the Trading Desk to help on 02073985220
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What is an ‘If Done Order’?
When placing a stop or limit order to open a position ( as opposed to entering at the current price) it is also possible to enter a ‘contingent order’ against it. Therefore, if your initial order is filled, creating an open position, you have the option of placing, in advance, a stop (and/or limit) against it. Using this function means you do not have to watch and wait for the first order to be filled to cover it with another.
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How does the trailing stop function work?
The trailing stop loss function allows you to set an automatic instruction to move your stop loss as your position moves further into profit. For example, if you initially set your stop loss at 50 points away from the price you entered at, you can also set a command for the order to follow (or trail) your position into profit. This is a great way to protect profits. You can also choose the frequency that it moves, for instance, if you select the trailing stop loss to 1 you are instructing the platform to move your stop loss up to sit 50 points below the price of the market permanently, every time it moves 5 1 points in your favour.
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What is the hedging facility?
The hedging facility offers you the opportunity to have directionally opposing bets in the same contract at the same time. For instance, if you have a short position in the UK 100 Rolling Future, you can also open a long position simultaneously. Other spread-better’s platforms don’t let you do this because after the initial short position was opened, any subsequent buy order in the same contract would net off the sell order and close the position, realising any profit or loss. Our platform enables you to ‘force open’ a new position (in our example this would be long) by selecting the ‘hedging’ button. This means you have full control over which trades you open and close and when that happens. This feature was is particularly popular for clients with certain technical trading strategies.
Margin
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What is the Deposit Requirement
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Initial margin refers to the funds in your account which are allocated to open and maintain a position. Each market or instrument carry different margin requirements and these are set in-line the volatility/liquidity of that instrument’s in the underlying markets.
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How is Margin calculated?
Margin is calculated in two ways; either as a percentage of the value of the position and or by using a fixed notional amount.
The percentage method is used on individual shares because of the number of different instruments. For example, ‘blue chip’ shares, which are deemed to be liquid (ie readily available to enter and exit with sufficient volume and tight spreads), carry a lower margin requirement percentage. Such examples of these are those found in the FTSE100. These shares are margined at between 5 and 10 per cent.
Shares which are less liquid - and therefore more volatile – require a higher margin percentage; this controls two aspects, i) ensures that you have deposited margin which is more relative to the liquidity of the instrument and ii) limits the potential to have a large position in a share which has the potential for greater movements in price (volatility) and therefore result in larger swings of P&L. Examples of these shares are FTSE Smallcap or AIM shares and these are therefore typically margined higher levels, ie between 10 and 20 percent.
Other financial products (indices, commodities and foreign exchange) are margined using fixed notional requirements. This makes it easier for the client to know how much margin is required to deposit as it does not vary as the price of the instrument changes. For example, the UK 100 requires only a £40 margin deposit for each £1 stake.
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How do I calculate margin for shares?
Once you have identified a share you want to trade, simply obtain the required margin percentage from our Rates page, multiply that by the price of the share and then multiply the result by your desired stake. For example, if you have decided to trade on Rio Tinto (the mining company), which carries a 5% margin requirement, and the current price is £34.76 (3,476 pence) and you wish to trade £1 per point then your margin would be 3,476 (share price) x 0.05 (5%) x £1 (stake) = £173.80 (margin requirement)
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How is margin calculated for non-share based products?
Other financial products are margined using fixed notional requirements. This makes it easier for the client to know how much margin is required to deposit as it does not vary as the price of the instrument changes. For example, the UK 100 requires only a £40 margin deposit for each £1 stake.
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Where can I find margin requirements for each market?
Margin requirements for each market we offer can be found by either clicking on the orange square information logo which is located next to the instrument you’ve chosen. Alternatively, you can refer to our Market Information Sheet on our website which can be found under Knowledge Centre.
Financial Information
Costs, Charges and Adjustments
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What are rolling charges?
Margin trading means that you only deposit a fraction of the total value of any position that you open and you are therefore borrowing the remainder of the total consideration from us. In return, we calculate the interest for that period and post it to your account each day that the position remains open. Therefore, each time that you hold a long position overnight, you may incur a small rolling charge. This charge reflects the fact that you are trading on margin.
Charges also exist on Daily Rolling Futures products and this is in respect of the administration required to maintain a position which would normally have a limited term, an expiry date, in this case one day. By offering you the chance to keep the position open for longer than the term, we add a charge to your account.
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Do I receive dividends?
Dividend adjustments are credited to long positions and debited from short positions held at the close of business the day before the ex-dividend date. If you are long you will receive 80% of the dividend, if you are short you will be debited 100% of the dividend. Payment is credited/debited to your account on the ex-dividend date. Dividend adjustments apply to equity and index markets. The morning after a share goes ex-dividend the price of the share will drop by approximately the amount of the dividend, so in effect, there is an immediate ‘nil-sum-gain’ for this action.
Payments and Withdrawals
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How can I fund my account?
You can fund your account by debit/credit card, bank transfer or cheque. This can be done by clicking on the Banking link within the trading platform or by phone on
0207 398 5220
We accept Visa, Visa Debit, Visa Delta, Visa Electron, MasterCard, Maestro and Solo.
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How do I withdraw my money?
Withdrawals must be requested via email to enquiries@worldspreads.com or via telephone with Client Services on 0207 398 5220.
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What are your withdrawal or payment charges?
There is a 2% Charge for credit cards but no charge debit cards. If you are withdrawing by bank transfer there is no charge for Bacs payments, but you will be subject to a £15 charge should you require a Chaps payment. For payments over £5000 this charge is waived.
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How do I add/edit payments details?
You can add or amend card details online by depositing funds. Alternatively you can call client services on 020 7398 5220 to add a card. If you would like to change your bank details you will need to send a copy of a bank statement confirming your name, address and account details.
Account Information
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What are the differences between the 3 accounts?
Limited Risk Accounts automatically place guaranteed stops on all positions so you will never lose more than your initial deposit.
The Active Account will not place automatic stops on your positions so you must watch the positions or place your own stops and limits. If your positions move against you, you will need to make sure there is always enough free equity in the account so you do not incur a margin call and risk your positions being compulsory closed.
The Platinum Accounts is available, by invitation, to customers that initially deposit £5,000 or more, with this account you will also qualify for the first ever account to offer zero point spreads.
Opening an Account
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What documents do I need to send in order to open an account?
Documentation is not always required as we conduct a credit check. If we are unable to identify you we will require more documentation. These consist of a copy of your passport and utility bill/bank statement for proof of name and address – these will need to be certified if you reside overseas.
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What do you mean by Certified?
To certify your documents, the documents need to be checked by a professionally qualified person, this can be a teacher, police officer, doctor, lawyer, a civil servant etc. This person must live in the UK and have known you personally for at least two years and must not be a relative.
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Can I open an account over the phone?
No, All applications must be applied for online, alternatively you can ask for a paper application but this will take longer and you will need to send copies of your supporting documentation.
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What is the minimum initial deposit?
We have 3 different types of accounts which all require a different initial deposit.
Limited Risk: £100,
Active Account: £500,
Platinum Account: £5000.
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How can I close my account?
To close your account you will need to send a signed letter to WorldSpreads, 2nd Floor, 3 Minster Court, London, EC3R 7DD. Please note if you wish to withdraw all your funds you do not need to close the account in order to do this.
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Is it possible to have more than one account?
In general, our preference is one account per client. Please contact the desk if you would like to discuss this.
General Account Information