Hello,
I just purchased a trading system it hasnt arrived yet but Im just very excited. My question is the following. The system is used for spread betting and it says it cant make you more than 100k per year. This is great but I will be trading with CFDs. So is there some limit like you can’t bet more than 100$ or 1000$ in a spread betting broker like IG? I`m trying to find out why the results are so limited.
The maximum trade size using UK-regulated spreadbetting is capped by the margin requirement. UK margin limits are tight - you need to leave a large portion of your account uncommitted to trades to provide margin required.
For example I find that to place a spreadbet at £1 per pip (0.0001) on GBP/USD requires about £415 in margin. So if my account capital is only £500 and I place 1 bet on this pair at £1 / pip, there is now insufficient margin to place any additional bets.
How much you make per year is a function of your strategy plus margin limits.
Try Pepperstone or Global IC markets instead. They have accounts with higher leverage than the 30:1
Holy cow. That’s crazy.