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How Spread Betting Works
3:01 · 8 chapters · Forex lessons, part 117
What you'll learn
A spread bet is pounds per point: stake × points moved. Here's what a point is, how much margin you need and what it costs to hold.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- How stake × points moved decides profit and loss
- Key point 2
- Bid, offer and why every bet starts behind the spread
- Key point 3
- What one point is on currency pairs, yen pairs and the FTSE 100
- Key point 4
- Retail margin at 30:1 and 20:1, close-out and negative balance protection
- Key point 5
- Daily funded bets vs forwards, slippage and guaranteed stops
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.