Help on Leverage in spreadbetting ?

[trade1010]

I am new to spreadbetting.

If I place £100 into my trading account for spreadbetting. How much leverage do
spreadbetting companies give for me before they close the deal or stop it?

Eg. If I am trading the FTSE 100 rolling index @ £1 / point. At what point
do the companies stop it or cut it off if it goes into minus? With only £100
in credit in my accout? And without a spot loss in place.

I have tried contacting CMC Markets, Odl ect... But cant seem to get a straight
answer.

Thank You.

 

[HW07]

hi,

I am with CMc at the moment and the minimum amount needed to be able to open a trade is £100, but if it moves against you, it will be closed. I would say at least 200 is the minimum to start with.

Regards,

HW07

 

[Tenapenny]

Go here CMC Markets > Spread Betting > Our Spreads then click on "dealing guide" near the bottom of the page. You will get a pdf that will explain it.

 

[ibex666]

leverage

I am new to spreadbetting.

If I place £100 into my trading account for spreadbetting. How much leverage do
spreadbetting companies give for me before they close the deal or stop it?

Eg. If I am trading the FTSE 100 rolling index @ £1 / point. At what point
do the companies stop it or cut it off if it goes into minus? With only £100
in credit in my accout? And without a spot loss in place.

I have tried contacting CMC Markets, Odl ect... But cant seem to get a straight
answer.

Thank You.

cmc will margin you out at £100. you need that as a minimum plus initial margin to trade the instrument. broadly speaking you NEED at least £200 to stand a chance.
most of the others nowadays put an auto stop loss at around 75 to 80 %, so you need initital margin plus 80% of size of position traded. to extend the stop loss you need more margin. It works out as similar to cmc. Note that cmc dont tend to email or phone you anymore when you go into negative equity because they auto close your position when you hit that £100.
GOOD LUCK!