As a way of giving you a transparent and easy to use trading and investment platform, TradeHub® gives you the option to input your trades as notional amounts. This means that in addition to the traditional way of trading by size i.e. pounds per point for Spread Bets or stake for CFDs, you are now also able to trade by the actual value of the contract i.e. the notional value.
Notional value trades enable you to look at your trades or investments from the perspective of the full economic value of a trade or the maximum exposure. So if you want to invest GBP 25,000 in the FTSE (assuming FSTE at 6,000) instead of 4.17 pounds a point, just select the ‘Notional Amount’ input method and type in 25,000 in the deal ticket. The system will convert it into the equivalent Spread Bet or CFD. Your position sizes will all be shown in terms of the traditional Spread Bet and CFDs. If the FTSE at 6,000 this translates into 4.17 Pounds a point.
Trading by value allows you easily adjust your positions according to your financial needs, trading strategy or investment goals. It also simplifies things immensely as you do not have to worry about what the Spread Bet or CFD convention is for a particular market.
Notional value coupled with variable margin is an enormously powerful tool in your journey to becoming a happy and successful investor. It gives you greater control over your funds and easier allocation of your resources creating a new trading and investing experience.