With a £10,000 account risking 1%, you should stake no more than £3.33 per point with a 30-point stop loss. If the trade hits your stop, you lose £100.00 — exactly 1% of your capital.
You are within the recommended 1–2% risk range used by most professional traders. This allows you to survive long losing streaks without significant drawdown.
Note: This calculator is for educational purposes only. Actual position sizing should also consider market volatility, correlation between open positions, and your broker's specific margin requirements. Always use a guaranteed stop loss where available to cap your maximum risk.
How to calculate position size for spread betting
Position sizing is the single most important risk management tool in spread betting. It determines how much you stake per point on each trade, ensuring that no single loss can seriously damage your account. The golden rule used by professional traders is the 1–2% rule: never risk more than 1–2% of your total account balance on any single trade.
The formula is straightforward: divide your risk amount by your stop loss distance. If you have a £10,000 account and are willing to risk 1% (£100) with a 25-point stop, your stake is £100 ÷ 25 = £4 per point.
- Smaller stops let you stake more per point for the same risk — but are easier to get stopped out of.
- Wider stops require a smaller stake to keep risk constant.
- Your risk per trade should stay fixed; let the stop distance drive the stake, never the other way around.