How to work out exposure/margin

quinntec

Newbie
1 0
Hey all,

I've just completed a trading course, and I'm looking for some help.
The way I was taught, was that when first trading, you should limit your exposure/leverage rates..

so on Forex, 6 - 8x exposed, or stocks 4/5 x

eg. if my account size is £10,000 - then my max position on a buy should be £80k.

with CFDs or Spreadbet account, I'm unsure how to put the trade on, as it talks about about lot sizes 10-100+
and its all based on pips/ticks..

I want to be able to limit my exposure to maybe 4/5 times initially - any idea how I would place this trade?

I've noticed that most forex brokers will offer 5% margin - meaning that I'd be 20 times exposed - this is far too much, and if I move 5% then I'm out of funds!....

help!
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock