Spread Betting Leverage & Margin

Spread Betting is a leveraged product, which means you can open a larger market position without investing the full capital. Profit or loss is then determined by multiplying your stake by the number of points the market moves.

Unlike with CFDs, where leverage is determined by trading volume (lots), when Spread Betting, leverage is determined by the size of your bet (stake).

For example, when trading CFDs on Spot Metals with FxPro, 0.5% is the required margin to trade 0-50 lots. When Spread Betting, 0.5% is the required margin to trade 0-3,000 GBP.

Margin refers to the funds you need to have in your account to place and maintain a Spread Bet. The required margin to place a Spread Bet depends on your stake and the instrument traded.

When Spread Betting on margin, you also need to ensure that the equity in your account is sufficient to cover all your open positions.

For more information on our margin call procedure for Spread Betting, visit our FxPro Edge - Spread Betting FAQ.

As a leveraged product, Spread Betting can be profitable, but also involves risk. Although leverage can help you open larger trades with less capital, it can also compound any losses, especially without sound risk management.