Mini Markets
10p per Point Spread Betting
Trading Smaller Stake Sizes
What Are Mini Markets?
Mini Markets are popular financial trading markets, which are now all offered with a minimum stake size of 10p. These markets are some of the most liquid and active in the world and are also most popular with those new to Spread betting. With Stake sizes being from 10p per point it allows beginners to get started and learn to implement their trading strategies.
New ESMA regulations have increased the minimum margin rates up by over 5 times on some markets, making it a lot less affordable for many clients to continue trading. Spread Co Mini Markets enables clients to trade low stakes with smaller deposits.
For example, the margin on a Stake of 1 on the UK100 @ 7150 with a 5% margin rate would equate to £357.50. For every point movement, the profit/loss would be £1.00
So a buy stake of 1 on the UK100 @ 7150 and sell @ 7160, the profit would be £10.00
The Same trade on a Mini UK100 would have a margin of £35.75, however, for every one point movement, the profit/loss would be £0.10.
So a buy stake of 1 on the Mini UK100 @ 7150 and sell @ 7160, the profit would be £1.00
A stake of one on the mini markets is equivalent to 10p rather than the usual £1. The markets themselves will be priced on a different point movement to the original market. For example, the UK100 is normally priced on a 1 point movement, whereas the Mini UK100 will be priced on a 10 point movement.
| MARKET | Stake | Spread – In Hours | Spread -Out of hours | Margin (Retail Clients) | Price | Approx Margin | Mini Market Pip Size | Memo:Standard Market Pip Size | |
| MINI UK100 | 1 | 1 | 2 | 5% | 7150 | 35.75 | 10 | 1 | |
| MINI GERMANY 30 | 1 | 1.2 | 2.2 | 5% | 11850 | 59.25 | 10 | 1 | |
| MINI US30 | 1 | 1.2 | 3.2 | 5% | 25750 | 128.75 | 10 | 1 | |
| MINI SPOT GOLD | 1 | 3 | 4 | 5% | 1225.5 | 61.28 | 1 | 0.1 | |
| MINI GBPUSD | 1 | 1.2 | 1.2 | 3.33% | 1.31502 | 43.79 | 0.001 | 0.0001 | |
| MINI EURUSD | 1 | 1 | 1 | 3.33% | 1.15385 | 38.42 | 0.001 | 0.0001 |
Is spread betting for me?
markets and what affects them
investment capital, through leverage
How do you spread bet?
When you open a spread betting position on a market, you are given a ‘buy’ and ‘sell’ price either side of the underlying market price – this is known as the spread. If you think the market will rise, you open your spread bet at the ‘buy’ price. If you think it will fall, you open at the ‘sell’ price.
What is a Stake Size?
The Stake represents the amount of money you are willing to Stake on the movement on a single trade. The change in the price of the underlying referenced market will determine how much profit or loss is made depending on whether the market price has moved in your favour or not.
If the stake placed for example was £1 per Point, for every 1 point movement of the underlying market your account valuation would either increase or decrease by £1 (depending on whether the market is moving in your favour or not).
Having small stake sizes for spread betting allows traders to build there trading confidence by starting with lower stake sizes. This assists clients to better manage their trading risk and formulate strategies.
Do I need a new account to trade Mini Markets?
No, you do not. Mini markets will be available to all standard Spread Bet accounts.
What is the value of £1 per Point on a Mini Market?
A Stake of 1 is equivalent to 10p per point.
Am I right in assuming it goes up in increments of 10p? Therefore stake size of 2 is equivalent to 20p per point?
Yes, this is correct.
Are the spreads the same as normal markets?
No, Mini Markets will have their own spreads, which can be found in the table above and on the market information pages.
Is the spread fixed?
Yes
Are any other financial instruments available as Mini Markets?
No. Only the markets specified are available at present
Please contact your relationship manager or customer service for any other inquiries.
Are there any plans to add more markets onto this?
We will be adding to these Mini Markets over time
Will my short Mini markets Index trades still be free of overnight financing?
Yes
Will I still receive 2% interest if my balance is between £10,000-£20,000?
Yes
How much profit will I take if a MIni Market moves 100 points in my favor with a stake of 1 per point?
You will make a profit of £10 excluding the dealing spread.
How much margin is required compared to stake size of £1 per point on the standard market?
The Mini Market margin is 10% of the Standard Market size
How long can I hold onto the trade?
Mini Markets are all cash, thus are rolled daily and have no expiry and can be held until closed or stopped-out
Will I be able to use a Spread Free trade on a Mini Market?
Mini Markets are not available to spread free account holders.
How is it priced?
Instead of being priced on a £1 per point movement for the standard market, Mini Markets will be priced on a 10p per point movement of the underlying market.
Will I still receive dividends on the Mini Market Indices?
Yes, similar to the standard market.
So Financing, Rollovers and Corporate actions are applied as normal.
Can I open a position on the normal market and the mini market at the same time?
Yes
Do liquidation levels change on the Mini Markets?
No, you will still be Stopped-out when your account valuation reaches 50% of the margin required (under normal market conditions).
What time are the Mini Markets open?
Mini Market trading hours are as the same as the standard markets.
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