FAQs

People often wonder why Financial Spread Betting is tax-free. Unlike share ownership, you do not own an asset when you open a spread bet. Therefore when you make a gain, it’s a betting gain rather than a capital gain. In the UK, betting gains are not taxable so you don’t pay any capital gains tax, stamp duty or income tax. On the other hand, losses cannot be offset for tax purposes. If you’re not resident in the United Kingdom or the Republic of Ireland you’ll have to check the tax implications of trading with your own financial advisor.

Your protection
Client monies are segregated in accordance with the Irish Financial Regulators’ Client Asset Requirements published in November 2007. Delta Index Limited, of which InterMarket Trader is a trading name, is a member of the Investor Compensation Company Limited under the Investor Compensation Act, 1998 (the “ICA”). The ICA provides for compensation (to the extent of 90% of an investor’s net loss as defined by the ICA or £20,000, whichever is the lesser) for clients of investment firms that are unable to return client monies and/or investment instruments belonging to clients.

How is the spread determined?

Spreads are calculated as a percentage of the underlying price. The main factor affecting the percentage is the liquidity in the market. If there is a wide spread in the wholesale market where we place your trade, this will be reflected in the spread that we quote:

As a rule of thumb you can expect:

– UK shares: 0.6 – 0.8% of price
– US shares: 0.7 – 0.8% of price
– Irish shares: 0.8 – 1.0% of price

How do I work out the mid price?
FTSE 4700 – 4702: The mid price is the centre between the buy and sell price which equals 4701.

What is gapping?
A gap is a break between prices that occurs when the price of a contract makes a sharp move up or down with no trading in between. Gaps can be created by a number of factors including overnight news, earnings announcements, a change in an analyst’s outlook or any other type of news release. Gapping can occur both on the up and downside.

What is the minimum opening deposit?

£1,000

Do I receive contract notes?

Yes, you receive these electronically when you trade and can print them out. You won’t need them for taxation purposes, as all your profits are tax free.

How can I withdraw my funds?

By bank transfer; we wire your money directly into the account you specify on your application form. If you want to transfer to another account we need to get your written authorisation to put through the transaction. If any other personal details change, simply call us on +353 1 664 8591.

Is there a charge if I decide not to trade and withdraw my funds?

No.

How close can I put my stop loss?

This depends on the contract you are trading but approximately 20 points away from your open position. Be careful not to put your stop loss too close as the noise of the markets could trigger your stop and close you out of the position.

How does it work if I don’t want a stop loss?

The account can be set up without automatic stop losses. A stop loss can be attached to an individual trade anytime the client wishes.

Do I receive a call/email if markets are going to expire to check if I want to roll over?

We attempt to contact the client either by email or phone to notify them that the contract is expiring and that they can rollover into the next contract if desired. However, we may not be able to contact each client and it remains the client s responsibility to contact the dealing desk if they wish to rollover their positions.