Low Stake Sizes

If you’re new to spread betting, it is advisable to consider starting with smaller stake sizes when you place your first spread bet so that the risks are controlled and minimised if the market moves against you.

What is a Stake Size?

Stake sizes enable you to determine the size of your trade. For example, let’s assume that the FTSE 100 is currently trading at 5601 and you believe that the index will rise in the future, and take a ‘BUY’ position or go long accordingly. 

Next you would determine your stake size, for example £1 per point. This means that you would gain £1 for every point that the index moved in your favour above your entry price of 5601, or lose £1 for every point movement in the opposite direction, i.e. if the price of the FTSE 100 fell. 

In this case, let’s say the FTSE 100 does go against your position and falls by 20 points to a new price of 5581. This means that at a stake size of £1 per point movement, you would end up losing £20 (20 x £1 = £20).

Lower Stake Sizes Reduce your Risk

In a nutshell, this means that the lower your stake size – the smaller your profit or loss potential. Larger stake sizes may be more suited for experienced traders but as a new trader, low stake sizes can be the ideal tool to help you learn spread betting so that you do not end up losing large amounts of money when you first start trading.

At Finspreads we offer low stake sizes on our Beginners accounts, meaning that you can trade from just 10p per point on a wide range of markets including indices, currencies, commodities and metals. Of course, even though your stake size is your decision, by giving you the flexibility to choose low stake sizes from 10 pence per point, we give you the option of getting to grips with spread betting for lower risk when you first start to trade with us.

Take advantage of our lower stake sizes and open a spread betting Beginners account.