Leverage question Demo vs Live account

[Hampshire321]

Hi,

I was wondering please if the demo spread betting accounts are using leverage? The reason i ask is that I'm currently working out my risk strategy which involves me using a certain percentage of my capital per spread bet, and would like that same percentage to give me the same potential returns/losses on a live account.

So for example, on a demo account if i place a £1 per point trade on BP to go up i know that if the price goes down by 5 points I'm going to lose £5 (without a stop loss being placed etc)

With a live account though where leverage of 5:1 is applied to stock bets, does that mean that in effect I am going be losing £25 in that same scenario?

Thanks

HL

[AndaIG]

Hi @Hampshire321

The demo uses leverage too. So it works on the same principle as the live account. A 1GBP pp trade will equate to a 5 GBP loss if the market moves 5 points against you. 

 All the best 

Anda

[Edgar_707]

On 14/10/2021 at 13:43, AndaIG said:

Hi @Hampshire321

The demo uses leverage too. So it works on the same principle as the live account. A 1GBP pp trade will equate to a 5 GBP loss if the market moves 5 points against you. 

 All the best 

Anda

But what button do you use for using leverage, because I just see in the demo account that in any trade I place there's not an option for leverage.

Thanks.

[ArvinIG]

6 hours ago, Edgar_707 said:

But what button do you use for using leverage, because I just see in the demo account that in any trade I place there's not an option for leverage.

Thanks.

Hi @Edgar_707,

All Demo accounts are using leverage. The leverage is automatically applied on the the dealing ticket. You can find the margin requirements on the info tab of the dealing ticket : 

The margin will display on the ticket:

All our demo accounts are using leverage, there is no toggle on button.

I hope that it helps.

All the best - Arvin