Spread betting with "London South East" lse.co.uk

[Lacanau]

As a beginner, I have found spread betting to be a good way to get some exposure to day trading with small capital. I have found** which provides a good platform (downloadable, which I like) and demo account.

However, I have yet to find any posts relating to this company on this forum, and I was curioius if anyone had used them/tried their platform before?

As I'm a newcommer, my understanding is limited, so if anyone could clarify this for me it would be much appreciated :clap:
I undestand placing stakes, and how the margin is calculated (tell me what you reckon on those as well ) however what I dont know is what consitutes a point for each ticker. If the price of GBPAUD is 1.5019 is a point up 1.5020? Similarly if LSE:LLOY is 30.12 is a point up 30.13?

Feel free to flame/grill/harrass me as I'm just searching to understand, is it possible that the value of a point varies between brokers?

I have also read on other posts here that one should be well cautioned when using online spread betting brokers, as they have a tendancy to be difficult when it comes to handling your money, especially once you start making it. lse.co.uk requires you to submit an application in order to withdraw your funds, instead of I guess allowing you to withdraw funds in a fasion similar to online banking. Should I be worried about this?

reading back, I would appreciate some recommendations on the margins different companys demand. Although I understand how they work, I wouldn't know if lse.co.uk is well valued against the other online spread betting firms out there.

Thanks in advance

 

[hacks]

LSE Spreads is a trading name of SpreadCo. There is a recent thread about SpreadCo which has a company representative so you can ask questions there. I've never had a problem withdrawing from them but then again I only did it once and it wasn't a lot of money.

For most currencies, its normally the 4th decimal place that is one point or pip (few exceptions e.g. Japanese Yen which is the 2nd). E.g. USDJPY 78.01 to 78.02 is one pip or point, whereas GBPUSD and most other currency pairs 1.5701 to 1.5702 is one pip or point. This is unlikely to vary between brokers as this is standard, but some brokers quote 5th decimal place e.g. 1.57012 (fractional pip). This doesn't change the pip or point calculation.

If you are betting on the S&P 500 (called US500 with SpreadCo) beware that stake size is normally per 0.1 and not per 1. So if you bet £1 per point and the S&P 500 moves by one full point (e.g. 1385 to 1386), the Profit or Loss is £10 not £1.

For shares, the Market Information Sheets say that 1 pence movement = 1 stake point.

 

[jungerns]

LSE Spreads is a trading name of SpreadCo. There is a recent thread about SpreadCo which has a company representative so you can ask questions there. I've never had a problem withdrawing from them but then again I only did it once and it wasn't a lot of money.

For most currencies, its normally the 4th decimal place that is one point or pip (few exceptions e.g. Japanese Yen which is the 2nd). E.g. USDJPY 78.01 to 78.02 is one pip or point, whereas GBPUSD and most other currency pairs 1.5701 to 1.5702 is one pip or point. This is unlikely to vary between brokers as this is standard, but some brokers quote 5th decimal place e.g. 1.57012 (fractional pip). This doesn't change the pip or point calculation.

If you are betting on the S&P 500 (called US500 with SpreadCo) beware that stake size is normally per 0.1 and not per 1. So if you bet £1 per point and the S&P 500 moves by one full point (e.g. 1385 to 1386), the Profit or Loss is £10 not £1.

For shares, the Market Information Sheets say that 1 pence movement = 1 stake point.

Very well explained Hacks.....
Certain members please take note.....

 

[Splitlink]

If you are betting on the S&P 500 (called US500 with SpreadCo) beware that stake size is normally per 0.1 and not per 1. So if you bet £1 per point and the S&P 500 moves by one full point (e.g. 1385 to 1386), the Profit or Loss is £10 not £1.

For shares, the Market Information Sheets say that 1 pence movement = 1 stake point.

With Finspreads it is 1 full point so, with that difference between them, it is something that you need to bear in mind when changing from one to another. Thanks for that, because it is something that I have wondered about with other firms.

 

[Lacanau]

Thanks hacks, very well explained. And cheers to all for your input

 

[Mata Nui]

Margin can be a bit variable and it really depends on your broker. Some for example calculate magin based on absolutes (so your margin to trade £1 pp on DAX will be x amount) but others will take a stoploss into account so your margin to trade £1 pp on DAX will be less if you have a 20 point stop than if you dont enter an initial stop at all.

examples are LCG vary the margin based on initial stop, GKFX use fixed margin (and its much higher). Not 100% sure without checking the platforms but i think you could bet about £3 - 4 pp with a £100 balance with LCG if you used a 15 point stop but the max with GKFX is 50p (and thats your entire margin gone).