I’ve spent a good long while learning how to read candlesticks and relative indicators. I’ve been demo trading on a “spread betting” site called Intertrader. All was good, til the European Union decided to introduce rules limiting the access to new comers. I now need to know how to actually execute a trade using the “Lot” type platforms. I literally have no idea. In spread betting it’s simple… You enter a trade for say £1… you place a 10 stop and a 20 take profit… and you know you’re risking 10 pounds and hoping to gain 20. The broker will expect you to have roughly 40 pounds in you account to place a £1 pound trade. There is no leverage of invisible funds that could cause you to suddenly owe them loads more than your £10 STOP LOSS. … But now that I’m looking at the “lot” system… it’s full of warnings that you might end up owing huge amounts of money that was never in your account in the first place etc etc… Can anyone enlighten me please?
Actually, spread-betting does carry the risk that you can lose more money than you placed in your account: a market can gap past your stop-loss so it is never triggered.
However, back to the access to SB. SB has not been outlawed by the EU but they have reduced the leverage available. Intertrader are still showing prospective clients that their SB offering works in the way you have explained. Are they trying to “steer” you towards a forex account rather than let you register for SB?
You do have other SB firms to choose from - what do they say?
Where once you needed 40 pounds to place a one pound trade… now you need 400 pounds to place a 1 pound trade. It’s not just Intertrader it’s all spread betting companies in Europe. But I’m not complaining about that on this thread… I just simply want to know how to place a trade using the non spread betting method. The buying “lot” method. … I really mean… as basic as that.
Lot trading is the best among spread trading. Because in spread trading you loses more money from your account. There is a huge risk in spread trading. Many traders following the lot trading. I also suggests you to do the lot trading instead of spread trading.
you’ve totally misunderstood
“spreadbetting” and “spread trading” are two completely different and unrelated things
have a look somewhere like Invvestopedia or even Wikipedia, where each will be clearly explained
yes, leverage permitted is changing throughout Europe
but this shouldn’t be very relevant to anyone trading by spreadbetting
generally, it would be very unwise to stake more than £1 per pip on forex, by spreadbetting, for every £750-£1,000 in your account anyway
a requirement to have £400 in your account to open a £1-per-pip spreadbet on forex is no imposition at all, because it’s effectively still a lower margin requirement than anyone using sensible risk management would want to have
Effectively there’s NO difference ! - Spread-betting you bet say £1 per pip.
Buying “Lots” - you have to work out how many lots = £1 per pip - then that is your betting size.
A bit more complicated arithmetic - that’s all !
Interesting thread as ask the same question myself
The leverage is the same for both. Better to stay with a spread betting account and not pay tax. Or you’re moving to a non EU regulated broker
Among the spread trading options, lot trading is the finest. Because spread trading causes your account to lose more money. Spread trading is fraught with danger. The lot trading is followed by a large number of merchants. I also recommend that you trade in lots rather than spreads.
Spread betting is no more risky than any other means of accessing the markets.
Like any tool, if it is used incorrectly, it will cause disappointment. Because so many people use it incorrectly, it has attracted a poor reputation. This is unjustified, its the traders who are at fault.