What's the maximum you can bet with realistically froma spread betting account?

[scouse1604]

What's the maximum you can bet with realistically from a spread betting account?

Hi,

Please excuse me for my complete ignorance, but I have only been paper trading for a couple of weeks.

I have been asked a question that I can't seem to get a straight answer to.

Is there a maximum limit that you can place using a spread betting account trading on the FOREX?

Also, is there a limit to the number of accounts a client can have with one bookmakers?

I have a stupid idea of having a couple of accounts for trading different currency pairs at the same time and seperate accounts would facilitate this.

Also, eggs in the same basket and all that!!!

Cheers

Paul

 

[thepoliteone]

Depends on the company, for example I think Finspreads has a £300 a point limit?

 

[Physicsman]

Don't Forget Margin!

Don't forget that it will also depend upon how much margin you can pony up too.

The market information sheets for each of the spreadbetting brokers will stipulate the max and min bets you can make for each instrument. For example cable (GBP/USD) on Finspreads has a max of £500 per point. With an IMR of 150 for the rolling bet, you will have to post £75,000 of margin to make that bet!!!

 

[Visaria]

Don't forget that it will also depend upon how much margin you can pony up too.

The market information sheets for each of the spreadbetting brokers will stipulate the max and min bets you can make for each instrument. For example cable (GBP/USD) on Finspreads has a max of £500 per point. With an IMR of 150 for the rolling bet, you will have to post £75,000 of margin to make that bet!!!

True, but remember that is per quote. If you have enough funds or large enough credit limit, you can bet as much as you want just by asking for a requote, buying/selling the max and then asking for a requote etc

 

[wasp]

I think capital spreads go to £150 pp (IMR 60 = £9000) but its hard enough to get filled at a tenner at times!

 

[adrianallen99]

Also, is there a limit to the number of accounts a client can have with one bookmakers?

Be careful on this one. Some bookmakers have rules against having more than one account with them. Often they will let you open more than one and they are happy for you to have multiple losing accounts, but if you start to make money they get funny. I opened an account for myself and my wife with one bookmaker. Even though my wife did actually trade her account, they claim I was trading with both accounts and broke their terms and conditions, because of this they have so far refused to allow me to withdraw my winnings and original deposit (around £2500) and have locked my account.

As the issue is not resolved I can't mention the name of the company, but my advice is to check their terms and conditions or perhaps ask them, before doing this.

 

[dcarrigan]

cmc have no limit as long as funds are deposited to cover. may be difficult to close if not in there favour.

 

[Visaria]

I have 2 accounts, both in my name, with CMC. When I asked for the second account, they just wanted to know why, apparently for compliance reasons and so I told them, one for short term trades and one for longer term trades. They were fine with it.

 

[Directional]

if you're looking to trade big on forex, why not look at trading the real currencies instead of placing yourself at risk trying to trade against the bucket shop SB firms.

if its the tax aspect, you should perhaps be looking at TwoWayFutures and trade the currency futures which gives you direct market access in a friendly SB tax free wrapper.

I wouldnt be worrying about trade size and tax though, until you have a profitable method however.

 

[Visaria]

Be careful on this one. Some bookmakers have rules against having more than one account with them. Often they will let you open more than one and they are happy for you to have multiple losing accounts, but if you start to make money they get funny. I opened an account for myself and my wife with one bookmaker. Even though my wife did actually trade her account, they claim I was trading with both accounts and broke their terms and conditions, because of this they have so far refused to allow me to withdraw my winnings and original deposit (around £2500) and have locked my account.

As the issue is not resolved I can't mention the name of the company, but my advice is to check their terms and conditions or perhaps ask them, before doing this.

Sounds a bit odd...why would they object even if you were trading both accounts?

 

[Bruno]

Hi,

Please excuse me for my complete ignorance, but I have only been paper trading for a couple of weeks.

I have been asked a question that I can't seem to get a straight answer to.

Is there a maximum limit that you can place using a spread betting account trading on the FOREX?

Also, is there a limit to the number of accounts a client can have with one bookmakers?

I have a stupid idea of having a couple of accounts for trading different currency pairs at the same time and seperate accounts would facilitate this.

Also, eggs in the same basket and all that!!!

Cheers

Paul

Hi Paul,
I use Futuresbetting.com and could bet any size on the CME products that I'm prepared to margin.................being given leverage during the day and paying exchange based margin overnight.
I find this the ideal platform to have larger bets as Futuresbetting mirror(hedge)every bet you make giving direct market access...... and therefore not skewing any price on entry or exit.
Cheers.
P.S..........they don't even boot you out when you make money!!!

 

[stevespray]

In my experience the smaller spreadbetting companies dont really like large exposures despite advertising that you can ask for a quote up to £xx.xx per point. Someone (who worked within a company) told me once that there is actually very little hedging activity within most companies despite claims to the contrary. On long list of winning trades on biggish stakes will almost certainly lead to action on the companies part. You would most likely be accused of some kind of arbitrage activity where you open a position with a spreadbet and lay it off somewhere else and thus lock in the profit when the bet expires. Spreadbet companies try to play this down officially but on the inside they are very worried about potential arbitrage. Obviously for arbitrage to be affective you need to use some fairly largish stakes and thus why attention is drawn to your account. Of course arbitrage is completely legitimate and most of the activity in the worlds markets relates to arbitrage of some kind or another. The companies will always be on the lookout for punters who trade large volumes on 'daily' type instruments as these expire with no spread thus reducing trading costs further.

If you persist with larger stakes then the larger companies might suggest that you purely use them as a tax efficient broker rather than your bog standard spreadbetting companies.

The bottom line is that if you start trading large and then start winning large then they'll do something to stop you. The course of action will of course depend on the instrument that you are dealing in. I used to make some very nice gains in the overnight grey markets that some companies offer but alas they now make dealing next to impossible.

Steve.