# Spread Betting Calculator

Use our spread betting calculator to calculate the profit or loss per point in any spread betting market. Enter your spread bet size, the opening price, the closing price, and the market direction.

### Spread Betting Calculator

## How to use the spread betting calculator

Below is a step-by-step guide on how to calculate your spread bet value:

- 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 that can help spread bet traders automate the calculation of profit and loss based on the point value.

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 find out how profitable your current setup is.

You can also use the spread betting calculator to see how much money you would make with a larger trade size.

This will you determine how much spread betting margin and leverage you need to add to choose the best position size.

### How are spread bets calculated in spread betting?

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 bet £10 per point on the FTSE 100 index.

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 benefit from calculating spread bets

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 and 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

**How do you calculate the spread margin on a bet?**

To calculate the spread bet margin on a bet your need to use a spread bet margin calculator.

**What is the spread bet calculation formula?**

To calculate the profit or loss of your spread bet, use this formula: **Profit/Loss = Bet Size x Market Movement**

**How are spread betting profits and losses calculated?**

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.