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Spread Betting Know you Risk!
Last Activity 11/25/2023 12:15 PM
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Frank Birch

Posts: 157

Joined: 3/25/2006
Location: UK

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Subject : Spread Betting Know you Risk!
Posted : 5/8/2022 5:37 AM
Post #32016

Hi to all,

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.


Frank Birch

Attached file : 2022-05-08_11-00-29.png SB.png (80KB - 84 downloads)

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