We created a UK spread betting calculator to help you calculate your profit or loss when making a spread bet.
Our spread betting calculator utilises industry average spreads taken from over 40 brokers and end-of-day market prices. When using the calculator, you can choose from six major currency pairs used in forex trading, or if you prefer, opt for the ‘other’ category to simulate making a spread bet on another market such as the FTSE 100.
The spread bet calculator uses real market data offering a unique experience where you can calculate the profit/loss of a spread betting strategy without a trading account or platform.
Our spread betting calculator
You can take some of the guesswork out of spread betting. Use our example below to explore how margin requirements, as well as profit and loss, are calculated on spread bets.
Market moved by: points (%)
= Size x (Opening Price Level - Closing Price Level)
= x ( - )
= x ()
=
*All values are estimated and for referencing only. The resulting P&L does not include cost and charges such as overnight funding.
SELL
BUY
GBP(£)
min: 0.25
The spread bet calculator uses real market data offering a unique experience where you can calculate the profit/loss of a spread betting strategy without a trading account or platform. Over time we will continue to enhance our spread betting calculator with new financial markets and trading instruments.
How Do You Use Our Spread Betting Calculator?
Below are the basic steps you will need to apply when using the spread betting calculator.
1. Choose Your Currency Pair
Firstly, decide on the currency pair that interests you from the forex pair dropdown in the deal ticket.
Our calculator is preloaded with data for six major currency pairs to help you simulate an accurate spread betting scenario. To trade other assets or currency pairs, you can choose the ‘other’ option from the deal ticket dropdown.
To provide a real-life trading environment, the buy and sell prices for these six forex pairs are generated based on industry average spreads and end-of-day market prices. These average spreads are continuously updated and sourced from over 40 of the best brokers worldwide.
2. Choose Your Positions Size
In the size field of the calculator, enter the amount per point you want to trade.
When you choose your bet, you’re specifying how much you stand to gain or lose with each point the market moves. For instance, if you would like to bet £1000 per point (assuming your account currency is GBP), you would enter 1000 in the size field.
If you chose a spread bet size of £1000 per point and the market moved 2 points in your favour, you would make £2,000. If the market moved 10 points against your position, you would incur a £2,000 loss.
3. Check Opening Price And Change If Needed
The next step is to update the opening price. This is the initial price of the market you are interested in.
The default opening price is the industry average for the currency pair selected. This is designed to give you an idea of current market conditions, yet you can change the initial opening price to whatever you please to help you test trading strategies.
4. Check Closing Price And Change If Needed
In the next field, you can enter your desired closing price.
The closing price point is where you aim to either secure a profit or minimise a loss depending on how the market moves. For example, if the EUR/USD is trading at 1.20 and you are aiming for a profit that corresponds to the market price dropping by 0.18 points, you would enter 1.02 in the closing price field.
5. See Your Margin Requirements
To determine your margin requirements for the bet, enter the assets margin rate in the deal ticket. For example, if the margin rate is 3.33% for EUR/USD, you would enter 3.33 in the margin field. If the bet size is 1000, the opening price is 1.20, and the margin rate is 3.33%, then a £39.96 margin will be required.
Margin Rate = Bet Size x Opening Price x Margin Rate
Margin Rate= 1000 x 1.20 x 3.33% = £39.96
If your prediction was correct and the market price decreased to 1.02, the result of your spread betting strategy would be £180 profit. Alternatively, if the market moved 0.18 points in the opposite direction, and increased to 1.38, you would experience a £180 loss.
6. Review Your Profit And Loss
Once you’ve entered your position size, opening price, and closing price, the spread betting calculator will automatically calculate your potential profit and loss. This is shown in the ‘Resulting P&L’ field.
Why Use The Spread Betting Calculator?
I use the spread betting calculator in two ways: it helps me calculate my potential profit from a position and it helps me calculate the potential risk. The spread betting calculator helps me calculate my total points, target price, and my stop loss and improve my betting odds.
When you enter the required details of your trade into the calculator, it will show you the potential profit or loss. This can help you decide if the trade is “worth it”.
If the potential loss is more than the potential profit (or payout), then I wouldn’t make the bet. Or I’d ensure that I close the bet long before the situation arises.
This spread betting calculator is good for beginners and experts alike. It will help you learn how spread betting works. Just note that his calculator only works for financial spread betting, not sports betting such as NBA, NFL or horse racing.
How Is The Spread Bet Calculated?
Imagine you are developing a spread betting strategy for the EUR/USD forex pair (remember that spread betting strategies are different from CFD trading strategies).
Your online broker’s pricing is 1.1150 to sell EUR/USD, and 1.1152 to buy EUR/USD.
You believe the Euro will strengthen against the dollar, so you buy at 1.1152 with a bet size of £10 per point. The market moves in your favour, and when the sell price reaches 1.1172 and the buy price reaches 1.1174, you decide to close out your position.
- Opening price level: 1.1152
- Closing price level: 1.1172
As the market moved 20 points in your favour from 1.1152 to 1.1172, your result is £200 profit.
Points the market moved = (1.1172 – 1.1152) = 0.0020 = 20 points
Profit = 20 points x £10 = £200
I have previously provided other examples when spread betting such as for forex currency pairs, gold and stocks.
How Does Your Margin Affect Your Calculator?
The margin calculation when spread betting is:
Margin = total exposure x margin factor.
As a practical example, if the margin offered by a broker was 5% (known as 20:1 leverage) for exposure of £100,000 a trader would need to put down £5,000 (5% x £100,000) to open the trade. Learn more about the role of leverage in our margin spread bet page.
Other Forex Trading Tools
- Forex Profit Calculator
- Margin Calculator
- Lot Size Calculator
- Forex Pip Calculator
- Broker Fee Comparison
- Time Zone Converter
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FAQ
Is Spread Betting Profitable?
Yes, spread betting can be profitable but you are taking risks as it can also result in losses.
The important factors to keep in mind are to have a proper betting strategy and to use effective risk management techniques. I also diversify my bets across different securities since it gives me a better chance to make a profit on average even if a few of my bets don’t pan out.
To be abundantly safe, it’s important to avoid betting more money than you can afford to lose.
Which Brokers Can I Use For Spread Betting?
In our opinion, the best broker for spread betting in the UK is Pepperstone.
This is because they offer the highest execution speeds which is essential for effective spread betting. They also offer a trading platform with more than 100 charts and technical indicators which makes it easier for spread betters to perform technical analysis.
Other good brokers that traders can consider include City Index, IG, and FXCM. Try the demo account before making a decision.
