Admiral Markets Reduces Minimum Trade Size on Index CFDs

The brokerage is introducing more flexibility for clients keen to trade CFDs on indices.

Admiral Markets has announced to its clients that it will be implementing some changes to its CFDs offering, allowing the firm to introduce more flexible options for its clients. The company’s offering will enable traders to conduct more sound risk management as well as enable clients with smaller deposit amounts to begin trading CFDs on indices.

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The changes are going to be implemented across a broad spectrum of indices that include the German DAX, the US Dow Jones, S&P500 and NASDAQ. The offering will also be extended across the majority of cash indices which Admiral Markets is offering with the exception of the Japanese Nikkei 225, Hong Kong’s Hang Seng and the Norwegian OBX.

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Clients of Admiral Markets will be able to open positions worth as low as 0.1 lots, where a full lot is 1 unit of the corresponding index. Many strategies which are requiring thin adjustments to the size of the positions which traders are taking do require flexible lot sizes, a problem which does not exist in FX trading, since the bulk of the brokerages are offering any lot size.

Admiral Markets UK
Jens Chrzanowski, Managing Country Director of Admiral Markets UK

The case has been different with CFDs and many traders which have been keen to trade volatile indices such as the German DAX have had to take bigger risks than they can afford by opening lot positions. Smaller lot options should result in sounder money management decisions for traders.

Commenting to Finance Magnates on the liquidity offerings used by the company for the new offering, the Managing Country Director of Admiral Markets UK, Jens Chrzanowski, said: “Admiral Markets uses a lot of liquidity providers, and like many big forex and CFDs brokerages from time to time we change them. The 0.1 lot size is available for our main account Admiral.Markets, which is used by circa 95% of all our clients.”

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