Frequently Asked Questions
Derivative Products
We have included a list of our most frequently asked questions about Derivative Products.
- How do I place a Guaranteed Stop Loss order?
Guaranteed Stop Losses can be placed online or over the telephone. They can be placed at the time of placing the trade or afterwards. But orders cannot be placed, amended or cancelled out of market hours. The minimum level you can place the order and the extra cost is shown in the 'market info' tab, which is accessed for each individual market via the icon in the trading platform. If you cancel a Guaranteed Stop and then place another at a later time, you will be charged again.
- What is a Linked Stop Loss order?
A Linked Stop Loss is a stop order that is put in place to limit the risk of a market moving against a current open position. The Linked Stop Loss is linked to an individual open position so that if that open position is closed, either by an opposing trade or order activation, then that order ceases to exist.
Example
You place a trade to Buy 10 UK 100 CFDs at 5350, and you place a Linked Stop Loss against that position at 5300.
If that open position is closed by an opposing trade, e.g. a sell of 10 UK 100 CFDs at 5320, then the stop loss will automatically be cancelled.
If the market sell price falls to 5300 and the Stop Loss order is executed then your position will be closed.
- What does trading as principal mean?
In conventional share trading customers will deal through a broker who places their trade with a range of market makers. The stockbroker is acting as an agent, searching out the best price for their customer. This is not the case with CFD trading. In this instance you are dealing with the provider ourselves and are contracting directly with us.
- What is Margin Requirement?
Margin Requirement is the amount you must deposit to place a trade. In order to place a Trade you must have enough Net Equity (cash and unrealized profit) to cover the Margin Requirement for that trade.
- Will my profitable positions offset losses on my negative?
Yes, open profits or losses are both taken into account when calculating margins.
- How do I calculate if I am on Margin?
Margin Requirement is the amount you must deposit to place a trade. In order to place a Trade you must have enough Net Equity (cash and unrealized profit) to cover the Margin Requirement for that trade.
The Margin Requirement is calculated in the following way:
Margin Requirement = Margin factor x Quantity.
Margin Factor - is the percentage or number of units set for a Market
Quantity - means the amount of units traded in a Market. The quantity is often referred to as the "stake" or "trade size".
Margin factors for shares are calculated according to the share's liquidity, market sector and capitalization.
The calculations for Margin Requirements can change in relation to other open positions you hold or depending on the Product you are trading. Please make sure you are aware of the Margin Requirement applicable before you open each trade.
You can find the current Margin Factor for a particular market by looking at the Market Information tab on the Trading Platform. Alternatively you can contact Customer Services Team.
- Who is responsible for monitoring my margin?
It is your responsibility to monitor your positions and to ensure you have sufficient funds in your account to cover them. If your Margin Level is at or below the Margin Close Out Level, we may close all or any of your Open Positions immediately and without notice at the next available Our Price. If you are in any doubt as to the position of your account or if additional funds are required, please contact our Customer Services Team on 1 800 646 581.
- What are the rules for payment of margin?
If the Margin Level for your Account reaches or falls below the Margin Close Out Level, we may close all or any of your Open Positions and refuse to execute new Trades until your Margin Level is greater than the Margin Close Out Level. We may take such action immediately and without notice. We may also cancel your Orders and take other steps if your Account reaches or falls below the Margin Close Out Level.
- Might I have to make more than one margin payment in a day?
Yes. In highly volatile markets this might be necessary.
- Do I receive dividends the same way as shares?
CFDs are subject to a dividend adjustment intended to replicate the net dividend payment applicable to the ordinary share. A dividend adjustment is credited to long positions and debited from short positions held at the close of business on the day before the ex-dividend date. Payment is credited or debited to your account on the ex-dividend date.
- Can I amend Stop Loss orders when the market is closed?
No. You are unable to amend existing orders out of market hours. This is because your current orders may be used to establish your margin requirements and as such we cannot allow them to be amended when markets are closed.
- How do I find out what the Margin Requirement is on an individual stock?
You can find the current Margin Factor for a particular market by looking at the Market Information tab on the Trading Platform. Alternatively you can contact Customer Services Team.
- How do I make payments and withdrawals?
You can make Debit Card payments by accessing your account online.
At present you are unable to make withdrawals online. Please call our Customer Services Team on 1800 646581 to request a withdrawal (If you are using a mobile phone to contact us please could you ensure your mobile is Internationally enabled and contact our Customer Services Team on +44 203 194 1648). Please note that TD Waterhouse CFDs cannot take payments from or make refunds to Visa or Mastercards or to third parties even with the customers' written permission.
- Are orders active when markets are closed?
Orders are only monitored and executed during TD Waterhouse CFDs trading hours (not necessarily underlying market trading hours). In the case where a market continues to trade outside of TD Waterhouse CFDs hours we will execute any triggered orders at the first available price in our opening hours which may be different to the order level. However if the market has moved beyond the trigger level and returned by the time that TD Waterhouse CFDs re-opens, the order will not be executed.
- How do I change my password?
If you have forgotten your password or wish to change it, please call the Customer Services Team on 1800 646581. If you are using a mobile phone to contact us please could you ensure your mobile is Internationally enabled and contact our Customer Services Team on +44 203 194 1648.