Spread betting simple explanation needed please.

[infinitym4ge]

OK i know this has got to be one of the simplest things to work out but i would much appreciate it if someone could break it down for me.

in the picture i am using IGindex, there is a picture of the chart at 8187.1
and the deal ticket of sell @ 8185.0 and buy @ 8188.0.

if i was betting at £0.10 pp and if i was to buy i would automatically be running at a PL of -£0.20?

and regardless of the bet size be it £10pp the spread never changes?

the reason i ask is if i was to use a risk reward ratio of 1:2 and my entry point was
what's plotted on the chart of 8187.1 with a 20point stop loss i should be looking to make a reward of not 40points but 42 points because of the spread thus making my limit 8229.1?

or have i missed something completely?

 

[Calinor]

8188-8185=3, so you would be down £0.30, and the picture you showed has a spread of 4 points.

But you are right if you enter at 8189 (like in your picture), with a stop 20 points away at 8169, then to gain 40 points, you will need for the 'sell' price in your picture to be 8229, and the 'buy' price will then be at 8233, a move of 44 points (40+spread).

The spread can sometimes change on IG.

 

[infinitym4ge]

i don't get where you see 8188 but seems to make some kind of sense now, i simply subtract the sell from the buy, get my spread add that to my stop loss which would give me a PL of 0.00

I knew it was that simple but sometimes things are too obvious. now i can work out what time frame i will be able to trade based on 2% of my balance, as well as what kind of a stop loss i will need based on the average movements on the particular time frame i will be trading on.

Spread betting sure is hard when you have fixed stop losses, based on the fixed stop losses i am going to have to trade on the 1H chart to give me time to set up plays and calculate my risk reward.

 

[Calinor]

in the picture i am using IGindex, there is a picture of the chart at 8187.1
and the deal ticket of sell @ 8185.0 and buy @ 8188.0.

8188. But anyway, I understood what you meant.

Spread betting sure is hard when you have fixed stop losses

Yes but unless you have excellent discipline, they are very necessary. In fact it could be a lot harder spreadbetting if you don't use stops and have no discpline to get ou tof a losing trade.

Good luck with your trading, and a 1hour chart is very good