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  • Low Stake Sizes

    If you’re new to spread betting, it can be advisable to consider starting with smaller stake sizes when you place your first spread bet, so that the risks are 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 6,901 and you believe that the index will rise in the future, and take a ‘BUY’ position or go long accordingly on the UK 100 instrument on the Finspreads platform. 

    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 6,901, 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 fall and your position in the UK 100 falls by 20 points to a new price of 6,881. This means that at a stake size of £1 per point movement, you would end up losing £20 (20 x £1 = £20). Should the UK 100 instrument rise away from your buy price you would make £1 for every point it gains. So if the FTSE 100 rose to 6,921, you could close your UK 100 trade for a 20pt profit, or £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.

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    Spread bet from 10p per point with tight spreads and low margins

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