how much margin?

mikehakata

Newbie
Messages
2
Likes
0
Is there a method of maximizing gains with a £10,000 deposit? In other words, if you were to bet £100 per point on a move are there proven methods to help maximise profits and minimise losses with this size of bet. Because of course the stock would only have to move 1 point in the right direction for you to gain. How would you work out risk and stop-losses?

Just wanted to work out the maths here. If we have a bigger margin with a spreadbetting company we could obviously make more money per point than a smaller margin... and potentially lose more money. So if we have £10,000 in the account instead of £2000 we could win more money per bet. 1% or 2% of our margin has suddenly grown exponentially
 
For starters, if the stock moved only 1 point in your direction, you'd still be a few hundred pounds down because of the spread.

You'd obviously stand to lose more and if you're asking this sort of question, you don't yet have the skilll to win!

Beginners get bogged down in the theory when you should be learning to actually trade at 50p or £1 a point - then see if you want to risk trading for more...

There are no short cuts or cunning ruses. If you want to amuse yourself with the theory, yes, you could easily trade maybe £1,000 a point with $10k capital and a sensible stop loss (margin is reduced to slightly more than the stop loss) but you'd just be gambling with your money and less than evens.
 
Assuming you are a newbie, your main goal is to work out how to minimise losses. Stop getting starry eyed dreaming about potential profits. Spend 2 months demo trading or trading at 1p/pip. I am tired of seeing newbies with hopes and dreams enter the marketplace only to have their hard earned savings removed from them in the blink of an eye.
 
Last edited:
IG allow you to trade for 10p a point for the first 2 weeks and then 20p for the next 2 and 50p for the last 2. It seems a good way to lower yourself in slowly and get a feel for the markets. When your trading real money for the first time, theory tends to fly out of the window :).
 
Top