Use our financial spread betting calculator to calculate the profit or loss per point in forex, stocks, and crypto markets. Designed for financial traders, this tool helps streamline trading across multiple asset classes.
Financial Spread Betting Calculator
How to use the calculator
Below is a step-by-step guide on calculating your financial spread bet value in markets like forex, stocks, and commodities:
- Enter your spread bet size (e.g. 2, 5, 10, or 50)
- Enter your opening price
- Enter your closing price
- Enter your direction (up or down)
- Click “Calculate”
The result you see is the potential profit or loss you would make on this current spread bet trade.
To get a different outcome you can either change the direction of the calculator or enter different values to see which one of your spread betting strategies is more profitable.
The profitability will increase or decrease depending on how many points the market is moving and how big your bet size is.
What is a Spread Betting Calculator?
A spread betting calculator is a tool for traders speculating on markets with financial spread betting, allowing them to calculate profit and loss based on market movements in forex, stocks, and cryptocurrencies.
It calculates the potential profit or loss based on the size of the spread bet, the opening price, the closing price, and the number of points the market has moved.
When adding these inputs to the calculator you will quickly see the profitability of your spread bet which let you make an informed decision on whether to enter or not.
A spread bet calculator is different from other tools such as a risk reward ratio calculator or a liquidation price calculator which are used to calculate risk.
The function of our calculator is to help you evaluate the profitability of your trades across financial markets, assisting in financial spread betting strategies.
You can also use the calculator to see how much money you would make with a larger trade size.
This will determine how much spread betting margin and leverage you need to add to choose the best position size.
How are spread bets calculated?
Spread bets are calculated by taking the total point value and adding it to the total market move which is based on the distance between the opening price and the closing price.
For example, if you want to place a financial spread bet of £10 per point on the FTSE 100 index, a popular choice in financial markets.
The opening price is 7,000, and the closing price is 7,050.
You think the market will continue up so you choose a long bet.
By inputting these values into the spread betting calculator, you will then see the potential profit or loss of the trade.
In this example, if the market moves up by 50 points (from 7,000 to 7,050), the trader will make a profit of £500.
If the market moves down by 50 points, you will take a loss of £500.
How traders can benefit from this
Since the spread bet calculator is very straightforward it is also very easy to use for beginners.
This makes it very easy for traders to manage risk by quickly finding out exactly how much is being risked per point and how much money the spread bet would make or lose.
By calculating the total profit or loss before entering the market, traders can determine the maximum amount of capital that is going to be risked per point and for the trade.
This helps with overtrading and taking on unnecessary risks.
The spread betting calculator can also help with the accuracy of trades.
When traders input the opening price, closing price, and the total bet size, they can make a more objective decision about whether that spread bet in particular is worth the risk.
Finally, making these calculations in your head before every trade takes a long time and if you are day trading with leverage your opportunity might disappear before you can get the calculation right.
Spare your time and avoid human errors by using our spread bet calculator for shares, currencies, cryptocurrency, and more.
Common mistakes to avoid
The most common mistakes that traders make when they calculate the value of their spread bets are:
- Entering the wrong values
- Discounting for the fees
- Relying too much on the calculator itself
Adding the wrong values will drastically change the calculation and this can mean differences in the thousands of pounds in profits or losses.
Simply adding or removing a 0 at the end of the spread bet value will completely change the outcome.
Fees and commissions are also something that most traders are not discounting.
Keep in mind that it costs money to enter and exit the market. This will influence the outcome of the spread bet.
Finally, many spread betters focus blindly on profitability and get hooked on finding the most profitable trade using the calculator.
Make sure to remember that the spread betting calculator is just a tool and not a magic oracle that will predict your next trade.
FAQ
To calculate the spread bet margin on a bet your need to use a spread bet margin calculator.
To calculate the profit or loss of your spread bet, use this formula: Profit/Loss = Bet Size x Market Movement
You first multiply your bet size by the total market movement. For example, a bet size of £5 by a market movement of £10 points will yield a profit of £50.
Yes, this calculator is specifically designed for financial spread betting, covering markets like forex, stocks, and cryptocurrencies. It is not intended for other forms of spread betting.
