Bungees Contract Details

Bungees are unique limited risk trades that have a built-in Floor or Ceiling level. The Floor or Ceiling works very much like a Stop level, ensuring that you cannot lose more than a given amount on your position.

Contract information:

1. Each trading day we quote a number of Buy and Sell Bungees on various “underlying markets”. In this context, an “underlying market” means the relevant IG Markets daily product to which the Bungee price relates. Each Bungee has a predetermined ‘Floor’ or ‘Ceiling’ set by us which acts as a ‘safety level’. We take the following factors into account when making our Bungee prices: the level of the underlying market to which the Bungee relates; the distance that the relevant Floor/Ceiling lies from the level of the underlying market; the time to expiry of the Bungee; the volatility in the underlying market; and our remuneration and costs. The Bungee involves built-in guaranteed risk protection: the closing price of the Bungee can never breach the safety level (i.e. the Floor/Ceiling) of the trade. Bungees have set Determination Dates (as set out below); however you are able to close the Bungee at any time prior to one minute before the Determination Date. Even if the underlying market breaches the safety level, the price of your Bungee will remain at the safety level and the Bungee will remain ‘alive’ either until the Determination Date or until you close the Bungee.

2. Determination Dates and settlement information for Bungees are as follows:

   FTSE 100, Wall Street, Germany 30, France 40, Italy 40 and Spain 35 Bungees are settled against the official cash closing levels of the actual underlying indices, i.e. FTSE 100, DJIA, DAX 30, CAC 40, MIB 40 and IBEX 35.

   All FX Bungees settle basis the middle of our quote for the spot rate concerned at 20.00 (London time) on the day of expiry.

   US Light Crude Oil Bungees settle basis the official closing price of the relevant futures contract of US Light Crude Oil on NYMEX at 14.30 (EST).

   Gold Bungees settle basis the official closing price of the relevant futures contract of Gold on COMEX at 13.30 (EST).

   Silver Bungees settle basis the official closing price of the relevant futures contract of Silver on COMEX at 13.25 (EST).

3. 24-hour dealing on Bungees starts at 07.30 (London time) on Monday and finishes when Wall Street Bungees close, usually at 20:59 (London time), the following Friday evening. Bungees can normally be traded from one hour after the previous settlement until one minute before the close of each market. Daily US Light Crude Oil Bungees can be traded from 08.00 until three minutes before the close of the market. Gold and silver Bungees can be traded 24 hours, with a break between 18.30 and 21.00 (London time).

4. The margin requirement for Bungees is the maximum amount which you would be capable of losing in respect of the Bungee at the time when you open the Bungee. If you are ‘buying’ a Bungee, this is calculated as the opening price minus the Floor, multiplied by the contract size. If you are ‘selling’ a Bungee, this is calculated as the Ceiling minus the opening price, multiplied by the contract size.

5. You cannot ‘sell’ a Buy Bungee to open a position; and you cannot ‘buy’ a Sell Bungee to open a position.

6. Stop and Limit Orders and Buffer Limits (whether they be Attached or Unattached Orders) are not available on Bungees.

7. Bungees cannot be rolled over.

8. Please note that we reserve the right to change our Bungee spreads at any time. For example, but without limitation, for indices, our spreads widen when the index underlying the Bungee is closed. For the purposes of Bungees, in-hours means:

   FTSE 100: 08.00-16.30

   Wall Street: from the time after the opening of the NYSE when all the Dow stocks have traded (normally by 14.45) until 21.00

   Germany 30: 08.00-16.30

   Italy 40: 08.00-16.30

   France 40: 08.00-16.30

   Spain 35: 08.00-16.30

9. These Bungee (“Rules”) form part of and supplement the general terms applicable to Contracts for Difference as set out in the IG Markets Margin Trading Customer Agreement (“Customer Agreement”). If there is any inconsistency between these Rules and the Customer Agreement, these Rules will apply. Capitalised terms in these Rules have the same meaning as is given to those words in the Customer Agreement.