Europe to Europe CFDs Margin Requirements

CFDs Margin Overview

CFDs Margin Requirements

Note

Legal residents of the US, Canada, Hong Kong, New Zealand and Israel are prohibited from trading IB UK-issued CFDs. Residents of Australia can trade CFDs issued by Interactive Brokers Australia PTY LTD. Residents of Japan can trade CFDs issued by IB Securities Japan (IBSJ). Singapore residents can trade CFDs except those based on underlyings traded in Singapore.


CFDs are global products and not connected to a specific country or region. The margin requirements are outlined in the section below, but may be subject to change depending on the rules of local regulators.



Risk Warning

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

62% of retail investor accounts lose money when trading CFDs with IBKR (UK).

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.





ESMA CFD Rules (Retail Clients Only)

As of August 1st 2018, the European Securities and Markets Authority (ESMA) mandates minimum initial margin levels and requires IBKR (UK) to liquidate open positions if the qualifying equity in your CFD account (cash and unrealized CFD P&L) falls below 50% of the initial margin requirements for all CFD positions. In addition, IBKR (UK) establishes its own maintenance margin requirements (IB Margin) based on the historical volatility of the underlying, and other factors detailed below. In relation to retail investors, IBKR (UK) will apply the IB Margins if they are higher than those prescribed in the ESMA measures. Reflecting the 50% close-out rule, initial IB Margins will be set as 2 times the maintenance margin requirement.

For additional details and examples please see IB ESMA Margin Implementation.


Share CFDs Margin


Retails Clients
Share CFDs Initial Margin Maintenance Margin
Standard IB Margin 2 x Maintenance Margin Risk-based calculation described below (minimum 10%)
ESMA Minimum 20% 50% of Initial
Applied Margin Max (IB Initial, ESMA Initial) Max (IB Maintenance, ESMA Maintenance)

Professional Clients
Initial Margin Maintenance Margin
Share CFDs 1.25 x Maintenance Margin Risk-based calculation described below (minimum 10%)



IB Maintenance and Initial Margin Requirements for Share CFDs

We establish a risk-based margin for each CFD individually, based on the observed historical volatility of the underlying share. Specifically, we calculate five historical standard deviations (based on 30 days' price history) to determine the standard maintenance margin, subject to a minimum margin of 10% (without correlation-based off-sets). The resultant margin rates apply position by position. In the majority of cases the minimum margin of 10% is applied.

In certain cases IB may, at its discretion, establish special margin rates for individual CFDs that are higher than those indicated by our standard methodology.

The following house charges may apply in addition to standard margins:

  • Concentration Minimum - We stress the portfolio by applying a 30% adverse move on the two largest positions and a 5% adverse move on the remaining positions. The total loss is applied as the maintenance margin requirement if it is greater than the standard requirement
  • Large Position Charge - If a position is greater than the equivalent of 0.5% of the market capitalization of a share, a large position charge applies. The required margin grows linearly from the risk-based margin to 100% when the share of market capitalization grows from 0.5% to 2%.
  • Short Cheap Stock Charge - A short cheap stock charge is applied for short CFDs on shares with market capitalizations below $500 million. The required margin grows linearly from 30% to 100% as the market capitalization decreases from $500 to $250 million. For market capitalizations between $250 and $100 million, the required margin is 100%, subject to a minimum of $2.50.


Index CFDs Margin


Retails Clients
Index CFDs Initial Margin Maintenance Margin
Standard IB Margin 2 x Maintenance Margin As for the related future (minimum 5% or 5 standard deviations). A 50% reduction applies intraday (details below)
ESMA Minimum 5% for Major Indices*
10% for Other Indices
50% of Initial
Applied Margin Max (IB Initial, ESMA Initial) Max (IB Maintenance, ESMA Maintenance)

Note

* Major indices are IBUS500, IBUS30, IBUST100, IBGB100, IBEU50, IBDE30, IBFR40, IBJP225, and IBAU200.


Professional Clients
Initial Margin Maintenance Margin
Index CFDs 1.25 x Maintenance Margin As for the related future (minimum 5% or 5 standard deviations). A 50% reduction applies intraday (details below)


Maintenance Margin Requirements for Intraday and Overnight

The maintenance margin requirement for Index CFDs is:

  • The overnight maintenance margin for the related future, adjusted for size.
  • Subject to an overall minimum of 5% or 5 historical standard deviations, whichever is greater.
  • The resulting requirement is reduced by 50% during the liquid trading hours of the related future. Full maintenance margin-enforcement will begin 15 minutes before the end of liquid hours.
Index CFD Liquid Hours Total Hours Time Zone
IBUS500 09:30 - 16:00 03:00 - 16:00 EST
IBUS30 09:30 - 16:00 03:00 - 16:00 EST
IBUST100 09:30 - 16:00 03:00 - 16:00 EST
IBGB100 08:00 - 16:30 08:00 - 21:00 GMT
IBDE30 09:00 - 22:00 09:00 - 22:00 CET
IBEU50 09:00 - 22:00 09:00 - 22:00 CET
IBFR40 09:00 - 18:15 09:00 - 22:00 CET
IBES35 09:00 - 17:35 09:00 - 20:00 CET
IBCH20 09:00 - 17:27 09:00 - 22:00 CET
IBNL25 09:00 - 17:30 09:00 - 22:00 CET
IBJP225 09:00 - 15:00 09:00 - 15:00 JST
IBHK50 09:30 - 16:00 09:30 - 16:00 HKT
IBAU200 10:00 - 16:00 10:00 - 16:00 EDT


Forex CFDs Margin

Forex CFD margins are determined for each currency pair on a per contract basis without regard to other Forex balances held in the account, including Spot FX.


Retails Clients
Forex CFDs Initial Margin Maintenance Margin
Standard IB Margin 2 x Maintenance Margin Per table below
ESMA Minimum 3.33% for Major Currency Pairs*
5% for Other Pairs
50% of Initial
Applied Margin Max (IB Initial, ESMA Initial) Max (IB Maintenance, ESMA Maintenance)

Note

* Major currency pairs are any combination of USD, EUR, JPY, GBP, CAD, and CHF. Any other combination is not, e.g. AUD.USD, SGD.CNH.


Professional Clients
Initial Margin Maintenance Margin
Forex CFDs Per table below Per table below

IB Margins

Symbol Product Description Symbol Currency IB Initial Margin IB Maintenance Margin
AUD.CAD Australian dollar AUD.CAD CAD 3% 3%
AUD.CHF Australian dollar AUD.CHF CHF 3% 3%
AUD.CNH Australian dollar AUD.CNH CNH 15% 12%
AUD.HKD Australian dollar AUD.HKD HKD 12% 10%
AUD.JPY Australian dollar AUD.JPY JPY 3% 3%
AUD.NZD Australian dollar AUD.NZD NZD 3% 3%
AUD.SGD Australian dollar AUD.SGD SGD 5% 5%
AUD.USD Australian dollar AUD.USD USD 3% 3%
AUD.ZAR Australian dollar AUD.ZAR ZAR 10% 5%
GBP.AUD British pound GBP.AUD AUD 5% 5%
GBP.CAD British pound GBP.CAD CAD 5% 5%
GBP.CHF British pound GBP.CHF CHF 5% 5%
GBP.CNH British pound GBP.CNH CNH 15% 12%
GBP.DKK British pound GBP.DKK DKK 10% 5%
GBP.HKD British pound GBP.HKD HKD 12% 10%
GBP.JPY British pound GBP.JPY JPY 5% 5%
GBP.MXN British pound GBP.MXN MXN 10% 6%
GBP.NOK British pound GBP.NOK NOK 5% 5%
GBP.NZD British pound GBP.NZD NZD 5% 5%
GBP.SEK British pound GBP.SEK SEK 5% 5%
GBP.USD British pound GBP.USD USD 5% 5%
GBP.ZAR British pound GBP.ZAR ZAR 10% 5%
CAD.CHF Canadian dollar CAD.CHF CHF 3% 3%
CAD.CNH Canadian dollar CAD.CNH CNH 15% 12%
CAD.HKD Canadian dollar CAD.HKD HKD 12% 10%
CAD.JPY Canadian dollar CAD.JPY JPY 3% 3%
CNH.HKD Chinese Renminbi - Offshore CNH.HKD HKD 15% 12%
CNH.JPY Chinese Renminbi - Offshore CNH.JPY JPY 15% 12%
DKK.JPY Danish krone DKK.JPY JPY 10% 5%
DKK.NOK Danish krone DKK.NOK NOK 10% 5%
DKK.SEK Danish krone DKK.SEK SEK 10% 5%
EUR.AUD European Monetary Union Euro EUR.AUD AUD 3% 3%
EUR.CAD European Monetary Union Euro EUR.CAD CAD 3% 3%
EUR.CHF European Monetary Union Euro EUR.CHF CHF 3% 3%
EUR.CNH European Monetary Union Euro EUR.CNH CNH 15% 12%
EUR.CZK European Monetary Union Euro EUR.CZK CZK 5% 5%
EUR.DKK European Monetary Union Euro EUR.DKK DKK 10% 5%
EUR.GBP European Monetary Union Euro EUR.GBP GBP 5% 5%
EUR.HKD European Monetary Union Euro EUR.HKD HKD 12% 10%
EUR.HUF European Monetary Union Euro EUR.HUF HUF 5% 5%
EUR.ILS European Monetary Union Euro EUR.ILS ILS 5% 5%
EUR.JPY European Monetary Union Euro EUR.JPY JPY 3% 3%
EUR.MXN European Monetary Union Euro EUR.MXN MXN 10% 6%
EUR.NOK European Monetary Union Euro EUR.NOK NOK 3% 3%
EUR.NZD European Monetary Union Euro EUR.NZD NZD 3% 3%
EUR.PLN European Monetary Union Euro EUR.PLN PLN 5% 5%
EUR.RUB European Monetary Union Euro EUR.RUB RUB 20% 20%
EUR.SEK European Monetary Union Euro EUR.SEK SEK 3% 3%
EUR.SGD European Monetary Union Euro EUR.SGD SGD 5% 5%
EUR.USD European Monetary Union Euro EUR.USD USD 3% 3%
EUR.ZAR European Monetary Union Euro EUR.ZAR ZAR 10% 5%
HKD.JPY Hong Kong dollar HKD.JPY JPY 12% 10%
MXN.JPY Mexican Peso MXN.JPY JPY 10% 6%
NZD.CAD New Zealand dollar NZD.CAD CAD 3% 3%
NZD.CHF New Zealand dollar NZD.CHF CHF 3% 3%
NZD.JPY New Zealand dollar NZD.JPY JPY 3% 3%
NZD.USD New Zealand dollar NZD.USD USD 3% 3%
NOK.JPY Norwegian krone NOK.JPY JPY 3% 3%
NOK.SEK Norwegian krone NOK.SEK SEK 3% 3%
SGD.CNH SINGAPORE DOLLAR SGD.CNH CNH 15% 12%
SGD.JPY SINGAPORE DOLLAR SGD.JPY JPY 5% 5%
ZAR.JPY South African Rand ZAR.JPY JPY 10% 5%
SEK.JPY Swedish krona SEK.JPY JPY 3% 3%
CHF.CNH Swiss franc CHF.CNH CNH 15% 12%
CHF.DKK Swiss franc CHF.DKK DKK 10% 5%
CHF.JPY Swiss franc CHF.JPY JPY 3% 3%
CHF.NOK Swiss franc CHF.NOK NOK 3% 3%
CHF.SEK Swiss franc CHF.SEK SEK 3% 3%
CHF.ZAR Swiss franc CHF.ZAR ZAR 10% 5%
USD.CAD United States dollar USD.CAD CAD 2.5% 2.5%
USD.CHF United States dollar USD.CHF CHF 3% 3%
USD.CNH United States dollar USD.CNH CNH 15% 12%
USD.CZK United States dollar USD.CZK CZK 5% 5%
USD.DKK United States dollar USD.DKK DKK 10% 5%
USD.HKD United States dollar USD.HKD HKD 12% 10%
USD.HUF United States dollar USD.HUF HUF 5% 5%
USD.ILS United States dollar USD.ILS ILS 5% 5%
USD.JPY United States dollar USD.JPY JPY 3% 3%
USD.MXN United States dollar USD.MXN MXN 10% 6%
USD.NOK United States dollar USD.NOK NOK 3% 3%
USD.PLN United States dollar USD.PLN PLN 5% 5%
USD.RUB United States dollar USD.RUB RUB 20% 20%
USD.SEK United States dollar USD.SEK SEK 3% 3%
USD.SGD United States dollar USD.SGD SGD 5% 5%
USD.ZAR United States dollar USD.ZAR ZAR 10% 5%


Additional Europe Margin Requirements for Residents of Europe


Use the following links to view any of our other Europe margin requirements:

Stocks

Options

Futures & FOPs

SSF - Single Stock Futures

Bonds

Mutual Funds

Forex

Metals


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Further Reading


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