FST FAQs

If you have any further questions on FSTs please visit our 'Ask a question section'

 

What is Financial Spread Trading?
FSTs are aimed at the more experienced investor, and work in a similar way to CFDs. A Financial Spread Trade allows an investor to speculate on whether they believe that the price quoted for a particular financial instrument is likely to strengthen (go up in value) or to weaken (go down in value). An investor’s profit or loss is determined by the difference in the price at which the trade was opened and that at which it was closed.

When dealing in FSTs you get indirect access to the price movements of a stock, sector, index, commodity or currency. In other words, you can access price movements in an underlying financial instrument without ever taking delivery of the underlying asset. As a Financial Spread Trader you can speculate on which direction a price will move, so you can make or lose money when the price falls as well as when it rises. In addition, because FSTs are 'geared', you simply pay a small initial deposit, allowing you to take a larger position than you might usually be able to and can translate into much higher profits, or indeed losses - an alternative way of viewing leverage is that, as your money is not all tied up in one transaction, you can use it for other investments.

What is the risk level associated with FST dealing?
FSTs carry a high level of risk to your capital and you should only deal with money you can afford to lose. The value of investments can fall as well as rise and you may lose significantly more than your initial margin payment. If you want to deal in FSTs, you will be asked to indicate your understanding by reading and completing the Risk Warning Notice as part of your account application; you may also be required to complete an appropriateness assessment.

How does Auto Close out work?
The Margin is the deposit required for a particular trade.  You need to have at least the margin required for a particular trade in your account in order to open a position.  If the Margin Level for your Account reaches or falls below the Margin Close Out Level, we may close all or any of your Open Positions and refuse to execute new Trades until your Margin Level is greater than the Margin Close Out Level.  We may take such action immediately and without notice.  We may also cancel your Orders and take other steps if your Account reaches or falls below the Margin Close Out level.

What is the “Trading Academy”?
If you are new to FST trading, then the “Trading Academy” could be a good place to start.  The Trading Academy is designed to assist clients in building confidence with the product and the platform for a four week period and allows smaller trade sizes.

Will trades done in my BARXdirect: FST account count towards my overall ‘deal count’ with Barclays Stockbrokers?
No. FST deals will not count towards reduced commission rates on other Barclays Stockbrokers accounts.

Do I need to hold any other type of account to deal FSTs with Barclays Stockbrokers?
No you can open a FST account without holding any other Barclays Stockbroker accounts.

Can I deal FSTs by telephone?
Yes, by calling 0845 355 0803*

What are Stop Loss orders?
A Stop Loss order allows you to set a price which if reached will automatically trigger a sell order (for long positions) or buy order (for short positions) to close your current position. This facility is available on most deals when placing a deal by telephone or online. A simple stop loss will be executed at the next available price at the time that the order is triggered.

These are available for a small charge, on limited stocks and indices and must be placed by telephone.

Who do I contact if I have a problem or need more information about the Barclays Stockbrokers FST service?
Call 0845 355 0801*

Can I transfer money from my existing Barclays Stockbroker accounts to my FST account through the Client Service Team?
Yes simply call our Client Service Team on 0845 355 0802*.

Do I need a separate login from my existing Barclays Stockbrokers login?
Yes and this will be supplied to you as part of the registration process.

What are the dealing hours for Barclays Stockbrokers FSTs?
The trading hours for BARXdirect: FSTs are from 20:00h on a Sunday during winter months or 22:00h during summer months, through to 21:15h on a Friday. Trades or orders can only be placed at times which are during both our trading hours and the underlying market hours.

What happens if Barclays Stockbrokers can’t locate me if they want to urgently discuss a FST position I am holding?
Depending on the circumstances this may result in Barclays Stockbrokers FSTs closing a FST position if there are not sufficient funds in your account.

What does the term LIBOR mean?
LIBOR (London Inter-Bank Offered Rate) is the bank rate at which banks offer to lend money to each other compiled by the British Bankers Association. This rate is the basis for calculating overnight financing charges for FST positions held overnight.

What is NTR?
NTR (Notional Trading Requirement) is a term used to describe the margin or deposit required to place a FST transaction.


*Calls to 0845 numbers from a BT residential line will cost no more than 4p per minute, plus 9.9p call set-up fee (correct as at April 2010). The price on non-BT phones may be different; please check with your service provider. You can only use these numbers if you are calling from the UK; if calling from outside the UK, please call +44 141 352 3909. Calls may be recorded to monitor the quality of our service, to check instructions and for security purposes.

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