OmniTrader Professional Forum
OmniTrader Pro General Discussion
Spread Betting Know you Risk!
0 replies, 266 viewings
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OmniTrader Professional Forum
OmniTrader Pro General Discussion
Spread Betting Know you Risk!
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Last Activity 11/25/2023 12:15 PM 0 replies, 266 viewings |
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Frank Birch Veteran   Posts: 157 Joined: 3/25/2006 Location: UK  User Profile |
All thou my trading is automated these days with Forex, I still trade the US indexes using spread betting as my broker vehicle. The reason I do is the obvious TAX reasons but also keep you in tune with the market and finding new ways to trade. But the biggest find with spread betting which I created a formula up years ago on how much can you place per £ pound per point per trade. I hope you find this interesting as it will help you keep you in the game if you have a solid trading mythology. Here is the formula I will use round numbers of ease of working it out. Account Size £10000 Divided by 3% = £300 Divided by Stop loss 25PT's = £12 per Per trade. In the chart attached you can see we have our stop loss in place (25 PT's from entry) and made a gain of 53 PT's so a profit of £636.00 Account Size/ divided by 3% / divided by stop loss = £ per point. We use 3% as this is deemed conservative, anything between 3% and 5% is ok but after that it becomes gambling. Spread Betting know your risk before you take the trade! And I wish all the best in the Spread Betting world. Regards Frank Birch  Attached file : 2022-05-08_11-00-29.png SB.png (80KB - 84 downloads) |
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