Sectors: Contract Details
We offer Sectors from the UK and Australia, providing exposure to a basket of related stocks with a single trade. We charge no commission on Sectors; all you pay is the dealing spread.
UK Sectors
We offer standard contracts on the following sectors:
- Aerospace & Defence
- Banks
- Beverages
- Chemicals
- Construction & Building Materials
- Electricity
- Electronic & Electrical Equipment
- Engineering & Machinery
- Food & Drug Retailers
- Food Producers & Processors
- Health
- Household Goods & Textiles
- Insurance
- IT Hardware
- Leisure, Entertainment & Hotels
- Life Assurance
- Media & Photography
- Mining
- Oil & Gas
- Oil Equipment
- Pharmaceuticals & Biotech
- Real Estate
- Retailers
- Software & Computer Services
- Speciality & Other Finance
- Support Services
- Telecommunication Services
- Tobacco
- Transport
- Water
We currently offer mini contracts on Mining and Pharmaceuticals & Biotech. Other mini contracts may be available on request; please contact our dealers.
Notes
Our sectors are a special form of CFD that give a client exposure to changes in the value of shares in specified sectors but cannot result in the delivery of any share or instrument by or to the client.
1) The dealing spread is normally 0.45% for all contracts on all sectors. Spreads are subject to variation, especially in volatile market conditions.
2) For Limited Risk transactions, a premium is charged on the opening. The Limited Risk premium is 0.3% for all sectors.
3) The minimum transaction size is one contract.
4) One standard contract is equivalent to £10 (per sector point) for UK sectors and A$10 (per sector point) for Australian sectors. One mini contract is equivalent to £2 (per sector point) for UK sectors and A$2 (per sector point) for Australian sectors.
5) The margin requirement is 5% of the underlying contract value (the level the transaction is opened at multiplied by the number of contracts multiplied by the value of one contract).
6) UK sectors can be dealt from 08.15 to 16.30 (London time). Australian sectors can be dealt from 10.10 to 16.00 (Sydney time).
7) For sectors, adjustments to reflect the effect of interest and dividends are calculated daily and posted to the client's account weekly.
i) Interest adjustments are calculated as follows:
D = n x L x C x i / A
Where:
D = daily interest adjustment
n = number of contracts
L = contract size
C = current sector price
i = applicable annual interest rate
A = annual divisor, which is 360 for Australian sectors and 365 for UK sectors
Interest in respect of long positions is debited from a client's account and interest in respect of short positions is credited to a client's account at rates which are agreed with each client.
ii) A dividend adjustment is applied when a component share passes its ex-dividend date (including the ex-date of any special dividend) in the underlying stock market. In the case of long positions, the dividend adjustment is credited to the client's account. In the case of short positions, the dividend adjustment is debited from the client's account.
8) When you trade in a currency other than your base currency your profit or loss will be realised in that currency and will be booked to your account in that currency. As a default, we will automatically, and on a daily basis, convert any positive or negative balance on your account in a currency other than your base currency to your base currency. You may change this default at any time by calling us or via our PureDeal platform.