Why trade company CFDs with CMC Markets?
CMC Markets has driven down the costs of trading through low dealing spreads and low margins. We now also offer commission on trading company CFDs as low as 0.08%.
Transaction based stop losses and customisable leverage
Over the last few years there have been extreme movements in the share markets, so we want our customers to have additional tools to help protect them during times of volatility. This is why we introduced our transaction based stop loss and customisable leverage tools.
Transaction based stop losses
Whenever you open a trade, the CMC Tracker platform automatically applies a stop loss based on the margin requirement for your trade (this feature can be disabled in Preferences). This will be done by product, every time you trade.
If you vary your margin, the stop loss will be aligned to your new margin requirements automatically. There is a simple financing slider in the deal ticket to allow you to move margins up or down. This enables you to balance your risk profile against your borrowing requirements.
You can also have the CMC Tracker platform automatically suggest a take profit order at a percentage of the market price. So if the stop loss is set at 5%, you could have the take profit level automatically set at 10% to create a 2 to 1 risk to reward ratio (this feature can be enabled in Preferences).
Click here for minimum margin requirements for all company CFDs.
You now have the option to choose your own margin requirements for each and every trade, which can help you manage risk and financing costs. From a financing perspective, if you decided to fund 50% of the trade and use 50% margin you would only pay financing on your net borrowings (in this case, 50% of the total value of the trade).
Traditionally, most CFD providers have fixed margin requirements, which means you have to pay financing on the total position size regardless of your margin. We believe customisable margin (the ability to de-leverage your position) is a cost-effective way to help you to manage your financing costs.
By using a customisable leverage, you can control your risk and financing during volatile markets to try and avoid a quick liquidation of your positions if they move against you.